The finance minister has decided to merge 10 public sector banks into 4 to increase the bank funding. Because due to the lower Non Processing Asset (NPA) ratio, it would be easier for banks to manage their banking experience with customers. The previous bank merge in India resulted in great success and made two strong banks SBI and Bank Of Baroda. Read the given article to know the bank merger list and their profit ratio.
Look at the Bank merger list of India! PNB, OBC and United Bank: Punjab National Bank will acquire Oriental Bank Of Commerce and United Bank of India in the merger. To reduce the NPA of both the banks the Punjab National Bank becomes the 2 largest bank in India after SBI. And after the bank merge in India, a new name and logo will be introduced for the bank on the 1st April 2020. Canara and Syndicate Bank: In the bank merger list 2019 syndicate bank is included because of the bad loans and low NPA. And, in previous months the bank has covered the losses much better and NPA is INR 25,330.10 crore. So to lower the NPA the Canara Bank will acquire the bank and it is expected that the NPA will be INR 13,82,000. Union, Andhra and Corporation Bank: The Union Bank Of India helps in reducing the NPA ratio of Corporation Bank and Andhra Bank in the bank merge in India. Andhra Bank merger effective date is considered to be the 1st of April 2020 with Union and Corporation Bank. After the merger, it would be the 5th largest PSB in India. Indian and Allahabad Bank: At last the final merger would be between Allahabad and Indian Bank. And, according to the bank merger list, the amalgamation makes Indian Bank the 7th largest PSB in India. Also, the lending capacity of the banks will increase after the reduced NPA ratio. What are the advantages of a bank merge in India? The main reason behind a bank merger is to stabilize the situation of banks who are facing loss. And, the reason for the loss is mainly the lower number of net processing assets. If the banks loans are not taken by as many customers, then the government decides to merge the bank. For example, as in the previous merger, SBI has merged with its 5 subsequent banks and Bhartiya Mahila Bank that result in making SBI the Topmost PSB in India. From the bank merger list that was set in 2019, it is also expected to be the same profit as SBI has scored. According to the current analysis, it is assumed that PNB is going to the 2 largest banks after SBI from the effective bank merger. The total business of the bank after the merger would be INR 18 lakh crore and increase the profit of the bank. And the number of PSBs is reduced in India which makes it convenient for the customers to visit their nearest bank branch. As the widely spread bank branch also consolidated after the merger of banks.
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Anika Sharma
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