Bank Mergers — Set 2
Banking · बैंक विलय · Questions 11–20 of 50
Which committee first recommended the reduction in the number of public sector banks through a three-tier structure?
Correct Answer: B. Narasimham Committee
The Narasimham Committee (1991 and 1998) suggested that India should have fewer but stronger banks. It proposed a structure with 3 to 4 international banks and 8 to 10 national banks. These recommendations laid the theoretical foundation for subsequent bank mergers.
The merger of ING Vysya Bank took place with which major private sector bank in 2015?
Correct Answer: C. Kotak Mahindra Bank
Kotak Mahindra Bank acquired ING Vysya Bank in an all-stock deal in 2015. This was a landmark merger in the Indian private banking space. It helped Kotak Mahindra Bank expand its presence significantly in Southern India.
Which bank was amalgamated with ICICI Bank in 2010?
Correct Answer: A. Bank of Rajasthan
ICICI Bank merged the Udaipur-based Bank of Rajasthan into itself in 2010. This helped ICICI Bank strengthen its network in Northern and Western India. The merger was approved by the RBI following internal management issues at Bank of Rajasthan.
In 2008, Centurion Bank of Punjab was acquired by which large private lender?
Correct Answer: A. HDFC Bank
HDFC Bank acquired Centurion Bank of Punjab to enhance its retail footprint. This merger was one of the largest acquisitions in the Indian financial sector at that time. It added over 400 branches to the HDFC network.
Lord Krishna Bank was merged with which of the following banks in 2007?
Correct Answer: C. Centurion Bank of Punjab
Centurion Bank of Punjab merged with Lord Krishna Bank before being eventually acquired by HDFC Bank. This merger consolidated the market share of private banks in the Kerala region. It reflects the period of rapid consolidation among smaller private lenders.
The 'Times Bank' was merged with which bank in the year 2000?
Correct Answer: A. HDFC Bank
Times Bank was merged with HDFC Bank in the first major voluntary merger between two new-generation private banks. This set a precedent for inorganic growth in the Indian private banking sector. It happened during the early stages of the internet banking revolution.
Which bank took over the United Western Bank in 2006 after it was placed under moratorium?
Correct Answer: D. IDBI Bank
IDBI Bank acquired United Western Bank following a recommendation by the Reserve Bank of India. This merger protected the depositors of the Satara-based bank. It helped IDBI Bank transition from a development financial institution to a full-service commercial bank.
Which historical bank was merged with the State Bank of India in 2010?
Correct Answer: D. State Bank of Indore
State Bank of Indore was the second associate bank to be merged into SBI. The merger was completed in August 2010 after government approval. This left five associate banks remaining in the SBI group until the 2017 mega-merger.
What is the primary motive behind the government's 'Mega Merger' of PSBs in 2020?
Correct Answer: D. Creation of next-generation banks with higher lending capacity
The 2020 mergers aimed to create large, financially robust banks capable of supporting a 5 trillion dollar economy. Consolidation provides economies of scale and better risk management capabilities. It also reduces the government's burden of frequent capital infusion into many smaller banks.
Which regulatory body has the final authority to approve the voluntary merger of two private sector banks?
Correct Answer: A. Reserve Bank of India
The Reserve Bank of India (RBI) is the primary regulator that approves bank amalgamations under the Banking Regulation Act. While CCI may look at competition aspects, RBI’s approval is mandatory for financial stability. This ensures that the interest of depositors is always prioritized.