The Big Picture - Bank Mergers : Need & implications

[@abhibhatta21]

Summary( for only my future ref.): * RBI recently made Prompt Corrective Action Framework (PCA) for 11 public sector banks due to increasing NPA. * Two possible wayout- i) by merging two or more banks ii) selling/ dis-investing the banks. * On the political perspective, Selling/dis-investing the banks is not a wise option as far as lose of employment & electoral fortunes are concerned. * Point against the Merger: i) merging the weaker banks with another good performing bank will penalise the later. ii) Will increase the stress level of the good performing bank due to increase in NPA after Merger. * Way forward- -> Consolidation by the way of merger is not a good solution. Rather turning the the banks under PCA into a narrow bank, by reducing their balance sheet will help them in better management of their functions. -> Capitalisation of banks by govt. only by merit base method, where the banks showing better performance should be capitalised more. -> Proper HR policies by bank board, director in solving the short-term as well as long-term issues.

[@rdwolf2452]

Excellent effort Abhishek. Much thanks.

[@Mk-kw6hy]

Good conversation about bank merger issue.. thank you rajya sabha big picture..

[@anilbabu014]

I think Frank shud try for UPSC Civil services once(if still eligible)

[@jitendrarockz]

Anil Babu M J haha. He doesn't want to increase the competition for aspirants.

[@diwakarsahu1808]

Rightly Said. :D But Who help the aspirants like us then.?

[@anilbabu014]

Diwakar Sahu Diwakar, I agree. I think nothing/No-one stopped us from getting opportunities. V have capability on our own and help weaker sections of society once v become civil servants.

[@bestbookhunter]

Anil Babu M J Yaa, you are absolutely right ✔️

[@maheshshinde8391]

Topic was merger of banks , they finally end up discussing why NPA is growing .

[@bibekkmr5510]

Sir, please have a discussion on reducing the seats in UPSC civil services and privatization or lateral entry in the senior most post of the government. In my point of view as a UPSC aspirant, I feel completely neglected by govt. and also see this as a path that leads to more prone to corruption. Is present govt. didn't have trust in UPSC or candidates selected from it. I know it has some positive impact and govt. want to use practical experience of the private sector but it can achieve through various training programmes. this system of lateral has the more negative impact than positive. I see only RSTV which can listen and give weightage to public opinion. Thank you RSTV.

[@aravindns7339]

Bibek kmr Yes. RSTV did a programme on that already. Desh Deshantar or Big Picture. Please check RSTV KZbin channel. It was telecast sometime within last two weeks.

[@bibekkmr5510]

I commented before that, Thanks BTW

[@harshkumarf4379]

lateral entry is good idea because a UPSC candidate is not a expert in the specific field ,,,, he will move from one dept to another ,,, being a civil service aspirant myself i hardly see any use of the knowledge which i gain from what i am reading now ,, its all too broad and not specific and too much exam oriented ,,, a person who has been involved in water management for many years would be a better choice than the person just serving the dept for 2-3 years and then move on to different sector,,,, but the selection of people through this lateral entry programme should be transparent and fair ,,, if not then it will just become another tool for political use ,,,,

[@TabassumKhatoon-mh2hq]

I think bank merger not at all good idea because there many shareholders they will face job problems, increase stress, also increase unhappiness in community. Govt should try to consolidation because through this step I hope might be solve little bit problem of Banks. Govt should try to decrease loan distribution to big companies because we know NPA is increasing day by day after sometimes govt can give loan. Due to NPA increasing govt is under pressure govt facing lot of problems they are not able to provide good lifestyle to people due to NPA increasing.

[@lavkushyadav9463]

Thanks Frank Sir

[@sarkarandassociates804]

Economies in scale of operations may push us towards consolidation. But work culture, symmetry in technologies, etc. should be the focal points. New Bank of India merged into PNB just to bail out a failed bank. Times Bank merged into OBC which itself may be amalgamating into a consortium of four banks including those with Gross NPAs in excess of 28%. Subsidiaries merger into parent SBI was not a very painful process since the cultures were similar. Banks, however, have a social role. Sticking to retail loans with back-up collaterals does not give a fillip to industrial growth. Let them specialise in specific sectors, embrace blockchain technology and try spread their reach. Consolidation should be amongst efficient banks.

[@ghanshyam123451]

Thanks sir. ...

[@daivikkiran8327]

Best!!

[@YatendraKrGupta]

nicely explained.

[@sachindeshmukh5450]

Please upload discussion video every day sir

[@pavanpanday7798]

If after getting -35marks in jee mains you can go for JEE advance then you can imagine which type talent we are getting...

[@harshkumarf4379]

how many did you get ??

[@avinash1354]

Who do you think are the best panelists on RSTV?

[@praveenkumarrrr326]

thats great.

[@r.k.bansal1458]

One possible solution is to close unprofitable branches of banks especially in those areas where there is fairly high density of bank branches. This move would not solve the current problem overnight but gradually pull them out of it. Another thing banks must do it to reduce their headcount. In my view all banks in India are over staffed. In order to compete in the present environment, banks like any other industry must become more efficient. This applies to capital efficiency as well as to personnel efficiency.

[@SuperDeshraj]

but about the sole of the market economy- competition and the survival of the fittest.

[@dhirajbankar1094]

I disagree on the fact that banks are overstaffed.It is the fact that many of the psb are facing scarcity of staff in its middle management as for so many years banking recruitment was stopped.

[@pankajsharma-xx5hh]

❤

[@snr5950]

Thanq Mr Frank for obliging the viewers w/o beard...

[@SuperDeshraj]

merger or sell out of PSB ??? then what about PSU that is fairly in more bad condition right from the socialist era and still upholds. what about Indian Railways, Air India, inefficient CIL, CPWD, PWD are these infested hand of govt should not be amputated?? are the banks solely to be blamed ?? or govt, Pvt corporation, bad policies, etc had a hand to play.. because ultimately its the employee has to suffer not the dubious leader and bureaucrat( armchairst)

[@AmitThakur-dy3pg]

In future there will only remain 4 or 5 big bank in India

[@radheshyamyadavreallyyouar7740]

How bjp destroyed future of student

[@darsuraya5736]

ist ....