BANK MERGERS – WILL MODI IMPLEMENT IT THIS TIME ?

BANK MERGERS – WILL MODI IMPLEMENT  IT THIS TIME ?

LIST OF PUBLIC SECTOR BANKS TO BE MERGED

Public Sector Bank mergers, is in the news since 1991, Narasimham committee recommendations had laid the foundation for it.  Committee categorically recommended, three to four banks of global size, Eight to ten banks having national presence and Local banks concentrating on region specific banking.   After 23 years of narasimham committee, on GYAN SANGAM held on 03 01 2015,  Mckinsey reiterates the same a Three tier system consisting of Banks that are equivalent to the size of global lenders, “ Policy banks “ for implementing the policies and schemes of Government and some” state-linked “banks.  Government will not have any stake in State- linked banks.

Since, 1991 all governments are working on this merger, but one big move in 2012 has gone unnoticed, majority bankers, including unions have ignored this.

Government has divided banks into six groups ( Excluding SBI ) and one large bank has been appointed as coordinator in each group for improving the policies and procedures.  Government tried to allay the apprehensions stating that it’s not a move towards merger, but simply sharing the experiences.

All the Public Sector Banks were asked to interact and work on major issues such as HRM, Internal Inspection, frauds, ALM, Recovery and BPR, and wanted some sort of standardization in all the related processes.

The six groups  ( Excluding SBI along with its associates which will form the seventh group) is as follows

  1. PUNJAB NATIONAL BANK  
  • DENA BANK
  • VIJAYA BANK
  1. CENTRAL BANK OF INDIA
  • INDIAN BANK
  • BANK OF MAHARASHTRA
  • ALLAHABAD BANK
  1. BANK OF BARODA
  • UCO BANK
  • IDBI BANK
  1. BANK OF INDIA
  • ANDHRA BANK
  • OBC
  1. UNION BANK OF INDIA
  • PUNJAB AND SINDH BANK
  • UNITED BANK OF INDIA
  1. CANARA BANK
  • CORPORATION BANK
  • SYNDICATE BANK
  • IOB

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