Friday, June 6, 2014

Bond Market, not Banking Behemoths

The finance ministry is reportedly examining mergers of the country's state-run banks to create stronger financial institutions. True, Indian banks do not have large enough balance sheets to meet the needs of large rapidly globalising companies. Small public sector banks could gain economies of scale by merging, but mergers should be voluntary , board-driven and based on commercial decisions that would deliver greater value to shareholders, and not forced by bureaucratic whims. Also...........

Read - ET

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