"A to Z': BENEFITS OF BANK MERGERS

'Rationalization' and 'economies of scale' are the two biggest advantages in a proposed bank merger, thereby huge cost reduction, increase in productivity levels and it strengthens the balance sheet of acquiring bank. Merger gives more benefits to the acquiring bank particularly reduction of fixed and variable costs and it avoids the wastages of expenditure to a large extent. Undoubtedly merger gives number of advantages to acquiring bank, at the same time controlling is very difficult due increase in size of the organization, business operations and volumes. To overcome this problem, from day one of merging processes, the acquiring bank should think about the control aspects for each and every function i.e., how effectively and efficiently the acquiring bank control bank branch located in nook and corner of the country. To mitigate three important risks of the banks i.e., credit risk, market risk and operational risk, the acquiring bank should strengthen the risk management department, risk focused internal audit, strict implementation of system and procedures etc.