Analysis: Will Modi government be successful on promises and claims on the merger of the banks?
Tuesday - September 18, 2018 10:51 am ,
Category : WTN SPECIAL
Dena Bank, Vijaya Bank and Bank of Baroda to be merged
Big question, will the NPA problems of banks be restored by the merger of banks?
SEP 18 (WTN) - The Modi government has taken a major step to improve the Indian banking sector, which has been facing the problems of NPA. The central government has decided to merge the three public sector banks, Dena Bank, Vijaya Bank and Bank of Baroda. The government claims that after the merger of these three banks, the new merged bank will be the third largest bank in the country. But the big question is whether the bank's merger in this way would improve the condition of the banking sector.
Giving information about the merger of these three banks, Financial Services Secretary of the Government of India Rajiv Kumar said, "We have decided to merge Dena Bank, Vijaya Bank and Bank of Baroda. With the merger of these three banks, it will become the third largest bank of the country."
Here, financial services secretary Rajiv Kumar says, "The board of directors of the three banks will consider mutual consent." He further said, "There is a need to improve banking sector and the government is taking care of the bank's capital requirements."He also said," The work of rationalizing the operations of the banks abroad is continuing. The government is serious about taking such steps, so as far as NPA is concerned, history should not repeat itself. "
Here, finance minister Arun Jaitley on the merger of banks said, "The government had already announced in the budget that the merger of the banks was also in our agenda and the first step has been announced." Jaitley said on the merger of the three banks, "The amalgamated entity will increase banking operations. No employee will face adverse service condition.”
Here, Jaitley said on the NPA, "The real picture of NPA came out in 2015; the UPA had hidden the NPA under the carpet." Jaitley said, "This merger will create a durable big bank, which will be the third largest bank in the country.”
For your information, let you know that in the last one and half year, this is the second time when the government banks are being merged. Last time the government merged five associate banks and Indian women banks in the State Bank of India on April 1, 2017. After that, the country's largest bank SBI joined the top 50 banks of the world.
It is being said that the Modi government, which has been trying to improve the condition of the ongoing banking sector, has decided to merge banks. After considerable thinking, the government has concluded that the benefits of the banks are lower than the operating costs. In such a situation, the government has taken the decision to merge the expenses incurred on the operation of the banks.
For your information, let you know that the new bank formed by the merger of Dena Bank, Bank of Baroda and Vijaya Bank will be the third largest bank in the country. It is being said that this bank will be a strong competitive bank on economic scale. With the merger of the three banks, they will have a good net worth, which will reduce the cost on deposits. This merger will increase the number of customers, number of market access and operations of banks. Customers will get benefit from this that will give them more products and better services.
Claims and promises are being made before the merger of these three banks, but it is necessary to see if it proves to be true or not. With the NPA as well as the cost of banking operations have been a headache for the government; let’s see how much of this Modi government's decision is proved right.
SEP 18 (WTN) - The Modi government has taken a major step to improve the Indian banking sector, which has been facing the problems of NPA. The central government has decided to merge the three public sector banks, Dena Bank, Vijaya Bank and Bank of Baroda. The government claims that after the merger of these three banks, the new merged bank will be the third largest bank in the country. But the big question is whether the bank's merger in this way would improve the condition of the banking sector.
Giving information about the merger of these three banks, Financial Services Secretary of the Government of India Rajiv Kumar said, "We have decided to merge Dena Bank, Vijaya Bank and Bank of Baroda. With the merger of these three banks, it will become the third largest bank of the country."
Here, financial services secretary Rajiv Kumar says, "The board of directors of the three banks will consider mutual consent." He further said, "There is a need to improve banking sector and the government is taking care of the bank's capital requirements."He also said," The work of rationalizing the operations of the banks abroad is continuing. The government is serious about taking such steps, so as far as NPA is concerned, history should not repeat itself. "
Here, finance minister Arun Jaitley on the merger of banks said, "The government had already announced in the budget that the merger of the banks was also in our agenda and the first step has been announced." Jaitley said on the merger of the three banks, "The amalgamated entity will increase banking operations. No employee will face adverse service condition.”
Here, Jaitley said on the NPA, "The real picture of NPA came out in 2015; the UPA had hidden the NPA under the carpet." Jaitley said, "This merger will create a durable big bank, which will be the third largest bank in the country.”
For your information, let you know that in the last one and half year, this is the second time when the government banks are being merged. Last time the government merged five associate banks and Indian women banks in the State Bank of India on April 1, 2017. After that, the country's largest bank SBI joined the top 50 banks of the world.
It is being said that the Modi government, which has been trying to improve the condition of the ongoing banking sector, has decided to merge banks. After considerable thinking, the government has concluded that the benefits of the banks are lower than the operating costs. In such a situation, the government has taken the decision to merge the expenses incurred on the operation of the banks.
For your information, let you know that the new bank formed by the merger of Dena Bank, Bank of Baroda and Vijaya Bank will be the third largest bank in the country. It is being said that this bank will be a strong competitive bank on economic scale. With the merger of the three banks, they will have a good net worth, which will reduce the cost on deposits. This merger will increase the number of customers, number of market access and operations of banks. Customers will get benefit from this that will give them more products and better services.
Claims and promises are being made before the merger of these three banks, but it is necessary to see if it proves to be true or not. With the NPA as well as the cost of banking operations have been a headache for the government; let’s see how much of this Modi government's decision is proved right.
