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