An earlier year saw a slowdown in India’s economy. This problem has been addressed by central government. But there was no significant improvement. Now, the Corona virus-induced nationwide fighting or stagnation has made the economy even smaller.
This announcement comes at a time when April 10 will mark the sixth day of mergers between 10 state-owned banking institutions. The bank sector is in bankruptcy right now due to the increase of non-performing and NPAs as well as the rise of prominent industrialists and businessmen who have embezzled funds from the bank.
The central government may have made the decision to merge weak banks with inadequate NPAs with larger banks in an effort to improve the economy. Reality is a completely different story. Bank employees are angry at the loss and protest the merger.
On the contrary, the finance minister has promised that no employees are needed. If this decision is taken, it will be difficult to comprehend how the bank’s potential to grow and make more profits. “It came to our attention immediately.
The banking system will not improve if the banks that were weakened today are not strengthened by bank employees who received undeserved favors in the merger process to an incompetent person or a landless person. The allegations have yet to be addressed by the finance minister.
Karona. The pressure is on. If you look back on the past, it is clear that the actions taken by ‘Jesse Bank have been a major factor in the current situation. It might be difficult for the bank to return their money depending on the size of its account holders.
The choice of where to deposit money is reduced in such situations if there are several banks. This does not mean that everyone believes that they can overcome the unusual situation if they have all the money in one place and then deposit it in another.
Advocates for bank mergers claim that large state-owned banks could compete with small private banks. The ability to lend by large banks increases. It is likely that politicians and bureaucrats within the state-owned banks could make it possible for people like Mehul or Modi to benefit. They extorted money through the Punjab National Bank of Pakistan (PNBB).
In reality, it is false to suggest that banks are offering unorthodox loans due to political interference. The intervention of politicians and high-ranking officials from central government’s finances ministry has always been a possibility. The worst part is when bank branch employees are robbed by high-ranking officials. The general depositor at the time did not have a guardian.
Big bank robberies can be made easier by looking at this background. Because the left-hander does not know what the other hand is doing in a large company. Depositors may feel more safe at smaller banks.
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However, the frequent replacements of RBI’s head and the fact of differences within the central bank continue the decline in morale of India’s banking sector. The net worth for state-owned banks only is Rs 9.28 crore. The banking sector would be in grave straits if the bank merge is unsuccessful.
Since Narendra Modi became president, there has been no improvement in the Indian economy. During the by-elections India’s Gross Domestic Product (GDP), was well in control. It was also felt by the general public. Modi government has been hard hit by the financial reforms. However, it was not to be.
The debate surrounding the plan to establish four large banks and 10 state-owned bank is still ongoing. It is possible that the government will fail to make the necessary deregulation changes, such as the introduction G ST or the management covid-19.