Merger Of Top Public Sector Banks What To Expect? - Mumbai

August 30, 2019, was a big day for the banking industry of India. The day changed the future of at least 10 public sector banks, merging them into 4 large banks. The reason, as stated by the Finance Minister of India, Nirmala Sitharaman, was to bolster the financial growth of the public sector banks.

The reasons may be many, but the truth is: any major merger, such as the one in question, always has a far-reaching, long-term impact on the economy of the country. More so, on its citizens, who end up with a slight insecurity in their minds about the future of their favourite banks they’ve been banking on for years.

We, at the Times Group, would like to suggest not to panic on the news. Go through this article below where we have tried to present a clear picture on what to expect ahead, following the recent merger.

Public Sector Banks’ Merger –Key Benefits & The Road Ahead

Mergers, even in the past, have displayed commendable benefits to the country’s economy, some of which have been highlighted below.

Large banks that are a by-product of the merger can look forward to gaining the ability to face competition in the international market.

The merger expects to reduce the cost of operations and enable better management of the banking sector.

Even for the banks, retaining and improving the market image would become much easier now after the merger. That is so because they can now engage better in product enhancements to increase customer base, gain a stronger hold in the share market, enter into technology upgrades, and much more, all in the interest of faster economic growth.

The merger is a boon for certain under performing banks, which can now hope to survive by having merged into stronger banks. This will also help build the trust of customers, who’ve long been worried about the performance of these banks ever since the merger announcement was first made.

Banking Management, <h1 class="h1_class">Merger of Top Public Sector Banks: What to Expect?</h1>, TimesPro

Source – moneycontrol.com

The benefits are many. But remember, there’s a flip side to every coin. Likewise, the merger picture isn’t as rosy as it seems. A merger is literally a new chapter in the life of the banks involved in the process, and therefore, some teething issues are bound to occur.

Challenges Likely to Surface for the Banking Sector Post Merger

The major roadblock that comes into prominence after a merger of this capacity takes shape is about ensuring compliance in decision-making processes. This is because each organisation operates on a different plane of thought and has different capacities to bear risks. Therefore, effective management becomes a grating issue to deal with.

Mergers may not always take into account the possible impact on customer perception and emotions, which may, at times, become difficult to handle.

Smaller banks which were originally created to cater to regional banking needs might lose their very purpose in transition. Large nationalised banks may not well be able to serve specific regional needs anymore.

Any Impact on the Career Prospects in the Banking Sector?

Like any new change, the need of the hour is to embrace the challenges just like the benefits. We, the Times Group, understand that the news of the mergers might have instigated a feeling of anxiety and fear amongst those thinking of a career in the banking industry. But we would like to reassure you that there’s nothing to worry. The career prospects in the banking industry are as bright as ever. Perhaps the best way to understand the changing scenario and learn about the nitty-gritty of effective banking management is to enrol yourself for a professional banking programme after graduation. One amongst such placement-oriented banking courses is the <a href="about:blank"><strong>Full Time MBA Program in BFSI</strong></a> in India conducted by TimesPro. The programme is highly trusted by banking aspirants from across the nation, for it brings assured job opportunities with leading banks.

If you wish to set foot in the banking industry and make it big, TimesPro brings you the opportunity. Join the course to get ahang of the way banks are managed and contribute your bit to shaping the economy.

To know more: <a href="about:blank"><strong>https://timespro.com/merger-of-top-public-sector-banks-what-to-expect/</strong></a>