The Hindu Business Line : `Size matters for banks'

The Bank of India Chairman, Mr M. Balachandran, has stressed the need for scaling up operations in banks. In an informal chat with Business Line, he said, "Large size is essential for cost-effective operations, for capital augmentation and for competing on a global platform."

"This can happen through organic growth and the inorganic route. In the former, banks cannot take it beyond 20 per cent per annum, but in the latter, which obviously can happen only through mergers and acquisitions, there has to be synergy between the entities that come together," he said, in reply to a query on the talk about Bank of India and Union Bank of India coming together. He neither ruled out the possibility nor admitted the same.

More Stories on : Mergers & Acquisitions | Public Sector Banks

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