LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

Bank of Baroda, Dena Bank, Vijaya Bank merger: No miracles, mergers result in higher bad loans, says AIBEA

Miracles do not happen by merger of banks but result in higher bad loans as it has happened in the case of State Bank of India (SBI), said a leader of the All India Bank Employees Association (AIBEA).  

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Bank of Baroda, Dena Bank, Vijaya Bank merger: No miracles, mergers result in higher bad loans, says AIBEA
Miracles do not happen by merger of banks but result in higher bad loans as it has happened in the case of State Bank of India. Image source: Pixabay
Written By: IANS
Updated: Tue, Sep 18, 2018
08:12 am
IANS
RELATED NEWS
DIWALI BONANZA for these bank employees - 1st time in India's banking history | DETAILS HERE DIWALI BONANZA for these bank employees - 1st time in India's banking history | DETAILS HERE
Setback for India? Bank mergers will kill branches when the need is for expansion, says AIBEA Setback for India? Bank mergers will kill branches when the need is for expansion, says AIBEA
IDBI Bank employees to go on strike on April 12: AIBEA IDBI Bank employees to go on strike on April 12: AIBEA
Bankers seeks criminal action against Vijay Mallya, other 'defaulters' Bankers seeks criminal action against Vijay Mallya, other 'defaulters'
Bankers to go on strike next month against anti-labour measures, says AIBEA Bankers to go on strike next month against anti-labour measures, says AIBEA

Miracles do not happen by merger of banks but result in higher bad loans as it has happened in the case of State Bank of India (SBI), said a leader of the All India Bank Employees Association (AIBEA). Opposing the central government`s decision to merge Bank of Baroda, Dena Bank and Vijaya Bank, C.H. Venkatachalam, the AIBEA General Secretary, said: "Firstly, there is no evidence that merger of banks would strengthen the banks or make it more efficient."

He said no miracle happened after the merger of five associate banks with SBI.

"On the other hand, it has resulted in closure of branches, increase in bad loans, reduction of staff, reduction in business. For the first time in 200 years, SBI has gone into loss," Venkatachalam said.

According to him, the bad loans of five associate banks of SBI as on March 31, 2017 were about Rs 65,000 crore and that of SBI Rs 112,000 crore -- that is a total of Rs 177,000 crore.

Post merger, SBI`s bad loans in 2018 increased to Rs 225,000 crore, he said.

The banking industry`s bad loans as on March 31, 2018 stood at Rs 895,600 crore.

"The total bad loans in Bank of Baroda, Dena Bank and Vijaya Bank is around Rs 80,000 crore. A merger of these banks will not help to recover the bad loans. On the other hand, the focus will be shifted to merger issue and that is the game plan of the government," Venkatachalam said.

According to him, the need of the hour was tough measures to recover bad loans.

"Already, the government`s policy of Insolvency and Bankruptcy Code to resolve NPAs (non-performing assets) is resulting in huge haircuts for the banks," Venkatachalam said.

He said out of 21 public sector banks, 19 were in loss on account of bad loans and provisions for bad loans.

The 21 banks put together, as on March 31, 2018 had posted an operating profit of Rs 155,565 crore. But due to provisions for bad loans of around Rs 270,000 crore, there was a net loss of Rs 85,000 crore, he said.
 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
All India Bank Employees Association (AIBEA)
RELATED NEWS
DIWALI BONANZA for these bank employees - 1st time in India's banking history | DETAILS HERE DIWALI BONANZA for these bank employees - 1st time in India's banking history | DETAILS HERE
Setback for India? Bank mergers will kill branches when the need is for expansion, says AIBEA Setback for India? Bank mergers will kill branches when the need is for expansion, says AIBEA
IDBI Bank employees to go on strike on April 12: AIBEA IDBI Bank employees to go on strike on April 12: AIBEA
Bankers seeks criminal action against Vijay Mallya, other 'defaulters' Bankers seeks criminal action against Vijay Mallya, other 'defaulters'
Bankers to go on strike next month against anti-labour measures, says AIBEA Bankers to go on strike next month against anti-labour measures, says AIBEA

LATEST NEWS

Sovereign Gold Bonds Latest News: Looking for cheaper Gold? Here is your opportunity? Know here how to OPTIMISE gains

Anil Singhvi’s Strategy March 1: Day support zone on Nifty is 14,465-14,525 & Bank Nifty is 34,650-34,800

Stocks in Focus on March 1: IOC, Tata Motors, KEC International, RailTel Corporation to Bharti Airtel; here are the 5 Newsmakers of the Day

Salaar Movie Prabhas: Release Date, Cast, Poster, Heroine - Confirmed! Another blockbuster from KGF makers?

Websites of traditional media houses to come under the ambit of section 69(A) of IT Act: Report

Covid 19 vaccination drive 2nd phase: PM Modi takes first dose of Covid 19 vaccine at Delhi AIIMS

Tech analysis on Big Bull Rakesh Jhunjhunwala stocks: Tata Motors, Titan, Lupin and Escorts

Golden Globes 2021: Jane Fonda receives Cecil B. DeMille Award

Centre finalises One District One Focus Product to promote in cluster approach

New Inbase smartwatch Urban LYF is here - Check features, offers, promo code and more

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved