Bank merge is a situation in which two banks pool their assets and liability to become one bank. In simple word unification of two or more bank into single bank. Merger in indian bank have been started the recommendation of narsimhan committee .
In present days merger is a big step where financial world are affected by such a move
Positive effect
1.Merger will reduce competition between banks
2.operstional cost will be reduce which will effect in profit
3.indian bank facing tough competition from foreign bank. Merger enables the bank to strengthen their capital base
4.after merger banks extend their business in various product at many different location
Negative effect
When a merger occurs an independent bank loss it’s charter and become a part of an existing bank and is driven by a unified control. Bank policy will change .
In present days merger is a big step where financial world are affected by such a move
Positive effect
1.Merger will reduce competition between banks
2.operstional cost will be reduce which will effect in profit
3.indian bank facing tough competition from foreign bank. Merger enables the bank to strengthen their capital base
4.after merger banks extend their business in various product at many different location
Negative effect
When a merger occurs an independent bank loss it’s charter and become a part of an existing bank and is driven by a unified control. Bank policy will change .
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