On 2 January 2019, the Union Cabinet approved the merging of Vijaya Bank, Dena Bank and Bank of Baroda. In April 2017, the Government had also merged six state banks with the State Bank of India. As we all know, our Banks are in a mess. The real question we must ponder over is this: Will mergers help in solving bank problems? Three main issues Firstly, these are not private banks which could sack its employees in the name of cost saving. These are public sector banks and they have the task of securing the future of around 90,000 employees. In general sense, when a merger takes place, multiple branches would have to be shut down. How this task will be achieved without terminating some employees and without resentment from them remains to be seen. Also, all these three banks have different organisation cultures. Therefore, the task of synchronising the employees into a single culture without any friction will definitely be a huge task. Secondly, the idea behind decentralis...
A collection of personal views on contemporary issues