Panacea For Slowdown?
Millennium Post Kolkata|September 04, 2019
Catering to a sluggish economy, the government’s ambitious step to merge banks portends disruptions rather than much-needed improvments.
B Sivaraman
Panacea For Slowdown?

Can merely merging 10 banks by dumping six financially tottering banks on four relatively viable ones make the four banks stronger or weaker? Though this is a matter of common sense and one need not have to be a financial expert to find the right answer, why is the government doing this and arguing that this move would create stronger banks?

If a government, strapped for cash due to financial crisis in a sluggish economy with revenues on a free fall, cannot afford to shell out money from the budget for recapitalization, can a shortcut of mergers be a viable long-term solution?

A section of the bank employees is also alleging that bank merger is a conspiracy to facilitate greater disinvestment and ultimate privatization of PSBs. In what way is this so?

The government is coming up with the brazen lie that it is merging the banks to meet Basel-III norms. But Basel norms are about ratios like cash reserve ratios, statutory reserve ratios and credit-deposit ratios and so on, and they are not about size. Then why is the government indulging in such misleading false propaganda?

That mergers would bring down the non-performing assets (NPAs) is another fraudulent excuse offered by the government. Increasing the size of the banks will not decrease the size of the NPAs. Is this rather a diversionary move to deflect public attention from the NPAs and for going slow on the recovery process against the corporates by bringing defaulters under Insolvency and Bankruptcy Code?

Can the disruptions caused by the mergers, especially due to software incompatibility between banks, be overcome by February 2020 as the officials claim?

The merger of banks and the creation of big banks is peddled as a panacea for the economic slowdown in the country. Will the merger and the associated disruptions help economic recovery or hamper it?

Denne historien er fra September 04, 2019-utgaven av Millennium Post Kolkata.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra September 04, 2019-utgaven av Millennium Post Kolkata.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA MILLENNIUM POST KOLKATASe alt
E-cigarettes Banned To Prevent Youth From Intoxication: Modi
Millennium Post Kolkata

E-cigarettes Banned To Prevent Youth From Intoxication: Modi

PM says the scourge and this obnoxious habit should not become rooted in society

time-read
2 mins  |
September 30, 2019
‘Shifting Assam Rifles' OPS Control To HM Will Impact Vigil Along China Border'
Millennium Post Kolkata

‘Shifting Assam Rifles' OPS Control To HM Will Impact Vigil Along China Border'

Army seeks Defence ministry’s intervention.

time-read
1 min  |
September 30, 2019
Out Of Space
Millennium Post Kolkata

Out Of Space

Environmental and anthropogenic factors have not just degraded elephant habitats but also left them stressed leading to a change in their social behaviour.

time-read
5 mins  |
September 30, 2019
RBI To The Rescue
Millennium Post Kolkata

RBI To The Rescue

Arjavi Indraneesh discusses RBI’s TAT mechanism and compensation in the wake of increasing transaction failures and resulting adversity on customer’s account

time-read
3 mins  |
September 30, 2019
‘I Always Want To Be Relatable'
Millennium Post Kolkata

‘I Always Want To Be Relatable'

The 28-year-old actor says, even after becoming a Bollywood actor, he feels he is not tailor-made for the profession.

time-read
1 min  |
September 30, 2019
South Bengal Braces For Heavy Rainfall, Intensity To Reduce From Tuesday
Millennium Post Kolkata

South Bengal Braces For Heavy Rainfall, Intensity To Reduce From Tuesday

KOLKATA: The Alipore weather office on Sunday predicted heavy to very heavy rainfall in three districts of South Bengal and medium rainfall in the rest of the districts including Kolkata, in the next 24 hours. The intensity of rainfall will reduce from Tuesday.

time-read
1 min  |
September 30, 2019
‘India, Russia Want To Diversify, Strengthen Bilateral Relations'
Millennium Post Kolkata

‘India, Russia Want To Diversify, Strengthen Bilateral Relations'

NEW DELHI: Prime Minister Narendra Modi on Tuesday said he looks forward to discussing regional and international issues of mutual interest with Russian President Vladimir Putin during his visit to Vladivostok to attend the Eastern Economic Forum.

time-read
1 min  |
September 04, 2019
The Dictum On Desertification
Millennium Post Kolkata

The Dictum On Desertification

With land being at the core of fighting climate change which is certain to hurt all sections eventually, UNCCD COP14 presents an opportunity.

time-read
5 mins  |
September 04, 2019
Teen Birth Control Use Linked To Adult Depression
Millennium Post Kolkata

Teen Birth Control Use Linked To Adult Depression

Millions of women worldwide use oral contraceptives and they are particularly popular among teenagers, the study revealed.

time-read
1 min  |
September 04, 2019
Sonia To Decide On Next MP Cong Chief: Scindia
Millennium Post Kolkata

Sonia To Decide On Next MP Cong Chief: Scindia

Scindia had lost the race of CM to Nath narrowly after the Congress came to power in the state in Dec last year after 15 years of BJP rule.

time-read
1 min  |
September 04, 2019