InvestorQ : Is merger of bank only or full solution to the problem of public sector banks or it is only a step towards solution of problem which I also feel??
SarThaK NiRhaLi made post

Is merger of bank only or full solution to the problem of public sector banks or it is only a step towards solution of problem which I also feel??

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swati Bakhda answered.
2 years ago
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You are right that it is just part of the solution to the problem of banks. Mergers cannot solve all the problems. There are other problems to address too. Here are some focus areas for banks apart from mergers.

· The issue of bad asset accumulation needs to be reduced drastically\

· Political interference and directed lending is a major concern for banks so mergers alone won’t help

· Banks must also be allowed to have quality top level managers to ensure that growth is achieved

· Lastly, banks must have shareholder value enhancement as their core objective if they have to survive in the long run.

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