Merger of banks will help achieve economies of scale, says MoS Finance

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In a written response in Lok Sabha, the Minister of State Anurag Thakur has said that the goal behind the mergers of PSU banks is to realise synergy and achieve economies of scale in the service of the customers.

To buttress his point, the minister cited the last year’s merger of Bank of Baroda,Vijaya Bank and Dena Bank. Thakur said that the rural footprint of these 3 banks has increased after their merger, which has enhanced their engagement with farmers and rural people. The last 11 months after the merger, have seen a hike of Rs 46,690 crores in agricultural loan disbursement.

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