Thursday, Apr 18 2024 | Time 07:53 Hrs(IST)
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Business Economy


Mr Venkatachalam said there is another argument that Banks would become globally competitive by mergers and help to create very big Banks.
All global Banks operate with much higher capital levels like $ 60 B, $ 70 B. Even if all 21 public sector Banks in India are merged into one Bank, the combined capital would be only around $ 3 B. Thus we cannot match these global banks in terms of their capital strength. Hence mergers would not make our Banks equal to those global banks, he maintained.
Hinting the Centre that Merger of Banks will surely result in closure of branches, whereas we need branch expansion to make banking accessible to all, he said Mergers and branch expansion are anti-thesis.
Mergers will kill employment opportunities for the unemployed youth, he said and added that Banking expansion will result in more employment both directly and indirectly.
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