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  • Category: Miscellaneous

    What it holds good as Bank of Baroda, Vijaya Bank and Dena Bank merge as one single Bank ?

    Few months back we have seen the mega merger of SBH branches with SBI and become the biggest bank across the country. Now the Finance Minister Arun Jaitely announcement to merge Bank of Baroda, Vijaya Bank and Dena bank as one single bank which will be the third largest network of banks across the country. One thing is sure to be understood here, that the public sector banks are unable to compete and sustain their business and thus over head costs making them go for mergers rather than closing the business ?
  • #648649
    SBI and other subsidiaries like State bank of Hyderabad were merged and now we have only state bank of India. There are no SBHs or State Bank of Mysore etc. This is done I think only to reduce the overhead costs. But as a user, we are not feeling any change. All branches of all the banks which are merged are working as it is with just a name change. There are no closing down of some branches. Same is the case with these three banks also. Probably by doing this, the banks may be able to make some profits as their overheads will come down heavily. This is good for the banks to stop unnecessary expenditure.
    always confident

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