MERGING STRATEGY MAY TOTALLY GO WRONG, IF THE MERGED ENTITY FAILS TO BECOME STRONG !!!

"In this global competitive 
markets of Finance and BANKING, 
is the Indian Government too concerned 
about its PSU Banks' global RANKING ! 
Without the help of 
all the PSU Banks, 
the Indian Government could have 
never succeeded in its 
mission of 'Financial INCLUSION'. 
Doing social work as well as profitable 
business by the same organization is 
quite difficult, but, alas, by seeing the 
bad assets of Priority Sector, the Indian 
Government often comes to a CONCLUSION. 
The concept of Mergers and Acquisition is 
to acquire the weak firm to increase 
the business of a strong COMPANY. 
As in India, 'Politics' is directly proportional 
to 'Finance', it is really easy to show that 
loss making PSU Banks are so MANY. 
The Indian Government failed to arrest 
the big defaulters to recover 
all the outstanding DUES. 
But, the Indian Government announces 
to merge several PSU Banks 
to create some breaking NEWS. 
Merging of PSU Banks 
will surely reduce the 
expenses at the top MANAGEMENT. 
Even some revenues can be earned by 
selling some redundant branch 
buildings by the Premises DEPARTMENT. 
The manpower per branch as well as 
the capital base will surely INCREASE, 
but, will the NPA and 
PNPA per branch DECREASE ? 
Merging strategy may 
totally go WRONG, 
if the merged entity 
fails to become STRONG". - Arindam Sain