On Monday, November 26, 2007, at my Blog Post No. 021 at this blog, I observed that it is a Custom in India to merge Banks, while in United States Banks get closed and liquidated. Present Context: Notwithstanding much Electronic and Print Media, Social Media and Politically motivated hype about looting of Indian Public Sector Banks, we must say that as far as Indian Public Sector Banks are concerned, "All is not Lost". But, enormous sincere efforts will be needed to restore them to their Equilibrium and Health. That type of hope cannot be nursed with Indian Private Sector Banks. Immediate Scenario: Proposed Merger of three Public Sector Banks: 1. Bank of Baroda, 2. Vijaya Bank 3. Dena Bank.
Present Status: The Boards of the respective Banks are to meet and pass appropriate Resolutions
ybrao-a-donkey's personal view, not intended to be imposed on others: Bank Boards passing Resolutions is only a formality, because they have little freedom or leeway. In fact, that pausity of such 'leeway or freedom', to express a 'dissent', howsoever, mild it may be , seems to be a bane for the Indian Public Sector Banking Industry. Hence, there is no need to rejoice or become agitated. The Boards will fulfill that formality.
Question: How do you view this step of Merger, as a measure of Restoration of Health of Indian Public Sector Banks?
Ans: There is a popular, a somewhat hackneyed joke: A person loses money somewhere on the Road. Starts searching for it on the Road, after going some kilometers. A passer-by inquires.
Passerby: 'What are you searching for?'
Loser: 'I am searching for money, I lost on this Road'.
Passerby: 'Where did you lose?'
Loser: 'Sometime back, near that banyan tree.'
Passerby: 'Then, why are you searching here, instead of near that tree?'
Loser: 'Here, we have street lights. Near the tree, there are no street lights. Shadows of the banyan are dense. In that pitch darkness, I get worried that some thief may attack me.'
Incomplete. Shall continue to add/delete/modify in this post.
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