BIS central bankers’ speeches  5  able to identify the risks associated with high profit business lines so that this can to be signalled to, and understood by, the highest level of management. 3. The third key principle is the concept of diversification: It is clear that an institution which has well diversified activities is better placed to weather challenges.
Many private sector banks have been merged with other private sector banks or the PSBs under this mechanism. The merger of Global Trust Bank with Oriental Bank of Commerce in 2004 was an example of this kind of merger. Earlier way back in 1960s, post Palai Central Bank’s failure, there were several such mergers guided by the Reserve Bank. 14.