Banks merger won't serve purpose

Kashmir Times. Dated: 1/6/2019 11:04:28 PM

Dear Editor,
The merger of Bank of Baroda, Vijaya Bank and Dena Bank-to make Bank of Baroda third largest Bank in India won’t serve any purpose for aam aadmi or to business class and even for banking industry. The stricter management and compliance with rules, and administration with tight control with accountability is the need of the hour. Professional management without any reservation and political considerations can revive ailing banks.
The bailing out of the capital can help for ailing banks without merger. And why ordinary shareholders lose their share investment amount for merged banks as they will get lesser than paid up share amount in Vijaya Bank and Dena Bank?
The action of merger is taken by the government and not the management or investors. What is their fault?
I hope none of existing depositors and account holders will lose any money on merger. Already there are some other banks on the lines of merger -all those must be awaited to see the outcome of merger of these banks for a definite period of say three to five years-analyzing the pros and cons, then only final decision must be taken in public interest for further merger of banks.
The Will of the government is needed to monitor and run the banks efficiently with honesty without merger.
—Mahesh Kumar,
B-49, Gulmohar Park,
New Delhi.

 

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