ESSAY ON BANK MERGER IN INDIA

BANK MERGER IN INDIA Introduction Merger is a process in which two or more companies decide to come together and merge together and create a new company. In bank merger the previously distinct banks are consolidated into one institution. When a merger occurs, an independent bank loses its identity and becomes a part of an existing bank with one headquarter and is driven by a unified control. Mergers in Indian banking system have been initiated through the recommendations of M Narasimham Committee. Basically, the merger helps in reducing the weakness and gets a competitive edge in the market. Recently, on 1 st April, 2020 the largest ever merger of the Public Sector Banks has come into effect in India. In this process ten Public Sector Banks to be merged into four large banks in a bid to make them globally competitive. Under the plan, Oriental Bank of Commerce and United Bank of India will be merged with Punjab National Bank; Canara Bank with Syndicate Bank; Andhra ...