Bank Merger Impact - Study24x7
Social learning Network
study24x7

Default error msg

Login

New to Study24x7 ? Join Now
Already have an account? Login
googlePlay app_img

Bank Merger Impact

Updated on 10 June 2020
study24x7
vivek mishra
7 min read 8 views
Updated on 10 June 2020
Share this article
Copy Link Link Copied
NAT Banner

Mergers and acquisitions are a way for some companies to improve profits and productivity, while reducing overall expenses. While good for business, in some cases they are not good for employees.  In these cases, the procuring organization has a command to diminish the quantity of workers performing comparable employments.


As we have known there is 27 Bank which comes under the Public Sector Bank, now it reduced to 12 almost every other individual who has a savings account or fixed store with an open division bank is probably going to be affected. After the merger, the zonal offices in each area would be merged, which means that the excess administrative staff working at these offices will have to be moved to branches or central offices. Administrative staffs are about 10 percent of the overall staff strength, the Union Bank official added. However it reduces the cost of operation. It helps in developing the financial inclusion and broadening the geographical reach of the bank operation. Merger leads to availability of a bigger scale of expertise and that helps in minimizing the scope of inefficiency which is more in small banks.

The first bank built up in Quite a while was Bank of Hindustan, which was begun in 1770. Second was The General Bank of India, which began in 1786. The most seasoned bank still in presence in India is the State Bank of India. It was started in the Bank of Calcutta in June 1806. The three banks were converged in 1921 to shape the Imperial Bank of India, which upon India's freedom, turned into the State Bank of India in 1955.


An or more point is that the branch system would increase so access to bank offices would become simpler given the combined substance doesn't close down all parts of consolidating banks. The combined entity of Punjab National Bank, Oriental Bank of Commerce, and United Bank of India will become the second largest PSU bank in the country with the second largest bank branch network with 11,437 branches. PNB will be the anchor bank. In case of the consolidated Indian Bank and Allahabad Bank entity.


There is a section of accountholders who will not impacted by these mergers. Sitharaman said that Bank of India, Central Bank of India will continue as is. Indian Overseas Bank, UCO Bank, Bank of Maharashtra and Punjab and Sindh Bank will also continue to operate as is A key purpose behind the merger is the heaviness of mounting awful credits throughout the years. While various laws have been brought in force to deal with such stressed assets, are these mergers an effective step to shed the weight of such bad loans.


After the merger's finale procedure, the clients holding financial balance, FD, venture, advance EMI on those specific banks may confront a few changes. With the choice of consolidating 10 PSB Banks on last Friday of August, Finance Minister-Nirmala Sitharaman made everybody dazed. On the off chance that you are additionally one of the clients of banks which are blended then this report is for you… It might affect your financial life.


List Of Important Bank Merge



ACQUIRING BANK
ACQUIRED BANK
YEAR OF ACQUISITION
Punjab national bank
New bank of India
1993
Bank of India
Bank of Karad ltd
1994
State bank of India
Kashinath state bank
1995
Oriental bank of commerce
Punjab co-op ltd
1996
Oriental bank of commerce
Bari doab bank ltd
1997
Bank of Baroda
Bareilly co- op ltd
1999
Punjab national Bank
Nedungadi bank ltd
2003
Oriental bank of commerce
Global trust bank
2004
Bank of Baroda
South Gujarat local area bank
2004
IDBI
Idbi bank Ltd.
2004
Bank of Punjab
Centurion bank
2005
Indian overseas bank
Bharat overseas bank
2007
State bank of India
Bhartiya Mahila bank(BMB)
2017
State Bank of Bikaner and Jaipur (SBBJ)
State Bank of Hyderabad (SBH)
State Bank of Mysore (SBM)
State Bank of Patiala (SBP)
State Bank of Travancore (SBT)
Bank of Baroda
Vijaya Bank, Dena Bank
Apr-19
Indian Bank
Allahabad Bank
Aug-19
Union Bank
Andhra Bank and Corporate Bank
Aug-19
Canara Bank
Syndicate bank
Aug-19
Punjab National Bank
Oriental bank of commerce and United bank of India
Aug-19




Banking
Like Comment
study24x7
Write a comment...
Trending Articles

Best Study timetable for class 8th students

By CBSE CLASS 8

HOW TO WRITE CERTIFICATE SECTION FOR CLASS XII SCHOOL PROJE...

By Edubabble LLP

Best topic ideas for class 7 Science projects

By CBSE CLASS 7

The best daily routine for class 8 students

By CBSE CLASS 8
Featured Courses
Related Posts

Check these related articles on Study24x7

SSC CGL 2020 Exam - Reasoning 3
12 min read 11 views

Candidates have already started preparing for the next round of competitive exams. Do not worry if English isn't your first language. There are man

SSC Preparation Strategies & S

1540 followers

Challenges in Government Exams
6 min read 27 views

The number of aspirants every year attempts for Government exams like SSC CGL. But only some of them are able to crack it. The ratio is relatively low

SSC Preparation Strategies & S

1540 followers

UAE ने रचा इतिहास, पहला मंगल मिशन HOPE हुआ लॉन्च
6 min read 0 views

सऊदी अरब अमीरात (यूएई) ने हाल ही में जापान के सहयोग से मंगल ग्रह पर अपना अपना पहला इंटरप्लेनेटरी होप प्रोब मिशन शुरू किया. यूएई का मंगल ग्रह के लिए

Vipin kumar gangwar

30 followers

SSC CGL 2020 - Notification, Latest Vacancies, Exam Dates, Pattern, Eligibility, Preparation Tips & Guide
7 min read 1 views

Hello SSC CGL Aspirants! Are you preparing for the upcoming SSC CGL 2020 Examination? Is my Preparation going fine?  Am I Preparing according to

SSC Preparation Strategies & S

1540 followers

UPSC 2020 Exam - NEWS Analysis 2
6 min read 0 views

Well if you are planing to target UPSC 2020 Exam, than you should need to go for Daily news analysis with the help of this article we are trying to ma

UPSC & State PSC

1008 followers

UPSC 2020 preparation strategy
6 min read 7 views

Now is the right time to make your UPSC 2020 preparation strategy. We have discussed some topics in this article that are surely going to help you in

Edubabble LLP

212 followers

History of Golden temple
6 min read 21 views

The Golden Temple, or Golden Gurudwara is the holiest shrine of Sikhs. It was built in late 16th century by Sri Guru Arjan Dev ji , and a copy of the

Exam hub

566 followers

Paper Analysis: SSC CGL General Intelligence & Reasoning (Previous Year Question Paper 28th August 2016) Answer Key
7 min read 11 views

In this article, I am providing the solution with the supporting explanation of the previous Year SSC CGL question Paper of General Intelligence & Rea

SSC Preparation Strategies & S

1540 followers

Share this article
Copy Link Link Copied