Tag: mergers

View: Economies of scale in bank mergers would be huge

The recent successful merger of two public sector banks (PSBs), Dena Bank and Vijaya Bank, with Bank of BarodaNSE -2.97 % has paved the way for the future road map of PSB restructuring. It has created the right synergy, achieved scale & resulted in better shareholder value creation. It would be wrong to think that this move of GoI was in

Want efficient banks? Go for more mergers, says RBI research

More consolidation in India’s struggling banking sector will help lenders lower costs and efficiently scale their operations, said researchers at the Reserve Bank of India. Labour cost efficiency, or output per employee, moderated across the sector between 2005-18, according to the recently-published paper. The authors added that state-owned banks fared better than private rivals on this metric