Bank Merger Impact

Updated on 10 June 2020

By vivek mishra

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Updated on 10 June 2020

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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