Why Merger Of Banks Is Important?
The banks are combining at a faster rate and recently the government has announced the merger of 10 PSBs. But why banks merger is necessary? Because merger provides support to the small or regional banks which are facing a bad financial situation like high NPA ratio. Such as Bank Of Baroda is merged with Vijaya and Dena Bank that provides them a huge benefit, as of now Bank Of Baroda becomes the second-largest public sector banks in India. The aim of this amalgamation is to make the banks a strong global lender. Know more about the banks merging process in this article. Need of the bank merger Merger of banks supports the small and regional banks to stabilize their financial status, and this can be done by consolidating with a large bank. The problems like lower Non-performing asset ratio can be managed easily because after the merger banks fund are combined together. The State Bank Of India merger with the associate banks and Bhartiya Mahila Bank is one of the most success...