Which bank is not in the part of bank merger process?

Question

Question

This question was previously asked in

NPCIL Stipendiary Trainee (Category-II) Official Paper (Held On: 11 Jun 2019)

Answer 1

The correct answer is Allahabad Bank.

Key Points

Bank of Baroda, Dena Bank, and Vijaya Bank were part of a merger process that was completed in 2019. These three banks merged, with Bank of Baroda being the anchor bank.
Allahabad Bank, however, was not part of this specific merger. Instead, it was merged with Indian Bank as part of a different consolidation plan by the Indian government in 2020.

Additional Information

Bank Mergers in India:
- Bank mergers aim to create stronger financial institutions with improved operational efficiency.
- Mergers help in reducing the number of non-performing assets (NPAs) and bolstering capital adequacy.
Impact of Bank Mergers:
- They lead to enhanced lending capacity and improved risk management.
- Customers benefit from a wider range of products and services offered by the merged entity.
Recent Bank Mergers:
- In April 2020, 10 public sector banks were merged into 4 to streamline operations and improve the banking sector's health.
- These mergers are part of the Indian government's strategy to create large, globally competitive banks.
Future of Banking in India:
- The focus is on digital transformation, financial inclusion, and meeting the growing needs of the economy.
- Bank mergers are expected to continue as the sector evolves to address emerging challenges and opportunities.