Merger Of Banks
By Sandeep nagyaan · 20 Sep 2018
Government has announced the merger of the Bank of Baroda, Dena Bank and Vijaya Bank, taking important steps towards strengthening the government banks. The bank which will be formed in all three banks, will be worth Rs 14.82 lakh crore and it will be the third largest bank in the country after SBI and PNB. After the merger, new branches of banks will be created and the number of banks will increase. With this, the number of ATMs will increase. You will not have to go away from your bank's ATM to withdraw money. Many new ATMs will be set up, which will benefit customers.
What would be next:- Improve the banking system of the country and the government is taking care of the bank's capital requirements. By the merger, the three banks will continue to work independently. With the formation of a new bank from the merger of the three banks, banking operations will increase and the situation will improve. After the merger, the interests of the employees will be fully taken care of.
Other impact of the Merger of Banks:- (1) No employee will have to face the service conditions which are of adverse nature for them. The best service conditions will apply to all of them. (2) The merger of bearing banks will not affect your loan and you will have to pay interest on it as before. (3) Banks, ATMs and passbooks will increase the paperwork of the customers of that bank. For this, the KYC process has to be redone. (4) This process will not have any effect on your bank deposit and it will remain safe because such mergers have happened earlier. (5) The name of the bank will be change after the merger of these banks.
Conclusion:- At the last this step will be helpful for public sector banks to control the NPA. And it can be create a path for commercial banks to merger like this.