There is certain inevitability for Indian Banks to evolve themselves as global banks as soon as possible.it is time now that India has one or two banks in international financial system to benefit out of globalisation of economies and justify its own strength as a fast growing economy in every sense of the term. Indian banking system is very sound and stable and our regulatory system has proved to be the best as per the recent international experience. When our IT can command the world market why not our banking which has strong foundation and history of sound working cannot make its presence in international markets is something surprising and it only indicates that adequate attention has not been given to give a push and thrust towards consolidation of banks to achieve the global standards in terms of size and methods of operation.Since we have large sized public sector banks with reasonable international presence, it is high time Government being the owner takes the initiative and provides the logistical support to merge one or two public sector banks with State Bank of India and develop it as a global bank. Merging subsidiaries with SBI can help only to increase the size of SBI domestically and will not serve the purpose of making SBI a global bank which requires acquistion and mergers of banks which have international presence.
This is the best time to acquire some banks abroad with due diligence and expand our banking internationally.
Dr.T.V.Gopalakrishnan
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1 comment:
It is right time for our banks to think of acquiring some weak banks in US, Europe etc.There is a need for new strategy in this regard. Merger of some banks to make them big enough to be noticed at international level is a good idea.
Lingaiah
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