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ARTICLE 2

INDIA MAY SOON HAVE A GLOBAL TOP 50


BANK
1.

2.

3.

What do u understand by term bank


consolidation? Do u support the idea of
consolidation among public sector banks
in India? If yes/no why?
SBIs mega merger with associate Bank is
good idea/ share ur views with reasons.
With respect to subsidiaries what are the
cost benefit analysis for such merger?

INTRODUCTION

SBI & associates talk for merger.


Merger will create an entity with balance
sheet of Rs37trillion.
The balance sheet of SBI will cross ICICI
Bank(7.2trillion b/s) SBI chairman Arundhati
Bhattacharya said.
SBI was ranked at 52 in the world in terms of
assets & after merger it will be ranked 45th.
Its a merger between 5 State Banks & BMB
All India Bank Association called strike.
Waiting for Central Government approval.

BANK CONSOLIDATION

Bank consolidation occurs when two or


more banks become one bank.

Reason for supporting Bank


Consolidation
NARSIMHAM

committee report 1991

SBIS MEGA MERGER WITH ASSOCIATE


BANK IS GOOD IDEA?
YES, I think SBI merger with associate bank
is a good idea. But I think there are also
some drawbacks of this merger.
So I divided it into two parts i.e. pros & cons

PROS

COST BENEFIT ANALYSIS OF SBI


MERGER

A cost benefit analysis is a systematic


approach to estimating the strengths &
weaknesses of alternatives that satisfy
transactions, activities for a business.

COST BENEFIT ANALYSIS OF SBI MERGER


WITH ASSOCIATES
COST
1.NPA(non performing assets)
2.Employees salary
3.Pension
4.Advances
TOTAL COST
BENEFITS
1.Total Assets
2.Total Deposit

RS
-478641.8
- 5000
-15000
- 478641
- 977283
RS
2800000
2180020

TOTAL BENEFIT

4980020

COST BENEFIT ANALYSIS

4002737

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