Finance Minister while directing their respective boards to consider the proposal said, “The Alternative Mechanism made the decision today and it has been proposed to the individual bank boards to take a decision. Boards would meet and after consultation take appropriate action.”
Finance minister further said, “This will hopefully create another mega bank which will be sustainable. The amalgamated entity would increase banking operations and its ability to go for further consolidation.”
“Merger of the three banks will make this the third largest bank of the country,” Rajiv Kumar, Secretary Department of Financial Services (DFS), said during a media briefing.
DFS Kumar said that the three banks will continue to work independently after the merger. He added that the merger would help improve operational efficiency and customer services. This will set an example for the next generation of strategic banking reforms.
Amalgamation of three banks will results in:
It will become third largest bank in the country.
It will become the strong competitive bank with economies of scale.
It will protect the interests of the employees.
It will preserve the brand equity.
It will ensure capital support.
It will position for substantial rise in customer base, market reach, operational efficiency and wider bouquet of products and services for customers.