Bank merger is the better impact in our banking system

1. IMPACT OF BANK
MERGER IN THE
ECONOMY
Prepared by: Jyoti Ranjan Sahoo

2.  Meaning of MERGER.
 Types of merger witnessed in the banking
sector.
 Benefits of bank mergers.
 Dangers of bank mergers.
 Impact of bank mergers in the economy.
 For example of recent merger banks.
 Conclusion.
Contents:

3. A merger is a corporate strategy of
combining different banks into a single bank in order to
enhance the financial and operational strength of both
organizations.
Meaning of MERGER:

4. Absorption
Consolidation
Acquisition
Types of mergers witnessed in the
banking sector:

5.  Scale.
 Efficiency.
 Business gaps filled.
 Talent and team upgrade.
The benefits of bank mergers:

6.  Poor culture fit.
 Not enough commitment.
 Customer impact and perception.
 Compliance and risk consistency.
Dangers of bank mergers:

7. The bright side:
 Strength.
 Easily manage their liquidity.
 Capture more market share.
 Saving of crores of rupees.
 Revenue increase as well as cost reduction.
 Investment asset related risk will be low.
Impacts of bank merger in the
economy:

8. The darker side:
 Merger will result in shifting/closure of many
ATMs, branches & controlling offices.
 The head office of the banks after the merger
will be situated at a far off place.
 Bank will be compelled to offer another round
of Voluntary Retirement Scheme (VRS).
Cont….

9. For examples of recent merger banks:

13. NPA +Low Performance=
MERGER
Conclusion: