Sunday, August 14, 2016

SBI merger :What makes me worry as a Customer of State Bank of India / Associate Bank’s Of State Bank Of India

SBI Merger :What makes me worry as a Customer of State Bank of India / Associate Bank’s Of State Bank Of India

                                                     Employee integration, branch rationalization is a big challenge   even after merger officially declared  which became  large-scale consolidation in the Indian banking industry & After merger State Bank of India  behemoth with an asset book of about  Rs 37 lakh crore , From regulatory perspective, monitoring and control of less number of banks will be easier after mergers.  Mergers can diversify risk management.

These Things can make anyone happy  as an Indian , but when it comes to take things as Customer things seems different –

                                                                         One thing is for sure that Merger will affect regional flavor and end regional focus, it is going to create monopoly of State Bank of India , And whenever there  is monopoly in market customer is always badly affected , No justification required for this  fact & Mergers will result in immediate job losses on account of large number of people taking VRS on one side and slow down or stoppage of further recruitment on the other. This will worsen the unemployment situation further and may create law and order problems and social disturbances. Immediate negative impact would be from pension liability provisions (due to different employee benefit structures) and harmonization of accounting policies for bad loans recognition.
As a Customer I Fear  Mergers will result in shifting/closure of many ATMs, Branches and controlling offices, as it is not prudent and economical to keep so many banks concentrated in several pockets, notably in urban and metropolitan centres.

Due to less number of branches queue is going to even longer in State Bank of India  

Mergers will result in clash of different organizational cultures. Conflicts will arise in the area of systems and processes too. Moreover The argument that size is going to determine the future of the bank in a  globalized scenario is facile. Remember the fate of large global banks, which collapsed during the global financial crisis? On the contrary, small banks have survived the crisis due to their nimbleness and the niche areas they operate in.

Moreover I will be worried being a customer of associate bank , that  what changes will rolled over upon us , that changes may result lower customer service or may be financial loss too !!!!!!
But Hope For the Best -& Congratulations to Indian Government and Policy Makers –Let it Decide Indian Economy Fate .

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  1. Apart fron this sbi monopoly will be bad for all customers ..that smaller private banks will grow as they will able to provide good services

  2. This step will let sbi out of comptetion and business of sbi will be affected


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