Merger Of Public Sector Banks

It refers to the pooling of the assets and liabilities of two or more banks. Starting from M Narasimhan Committee, various committees and experts have advised that India should have few but big banks.

Small public sector banks act as an impediment for high economic growth due to the following reasons:

• Limited geographical outreach.
• Duplicity of resources.
• Less risk taking capability due to its limited size.
• Phenomena of Moral Hazard.
• Incompetence and unprofessional management.

Bank of Baroda and SBI have been consolidated in April 2019 and September 2019 respectively. In this light, it was announced on 30 September, 2019 that 10 public sector banks will be merged ....