It is reported by Financial Express that the Prime Minister’s Office (PMO) has held a meeting on Wednesday on the proposed amalgamation of 10 public sector banks (PSBs) to create four larger lenders.
It is believed that the scheme to implement amalgamationof 10 Public Sector Banks is yet to be endorsed by the Cabinet.
On February 15, finance minister Nirmala Sitharaman had said there was no reason to go back on the merger decision, refuting any particular reason behind the “delay” in notifying the final structure of the merger, amid speculations that it might be put off beyond the intended date of April 1.
Some of the anchor banks in the consolidation process were earlier asked to give presentations on their plans for the merger and how the entire amalgamation exercise was going to pan out. No official communication is on record related to this as reported by financial express.
The consolidation exercise was aimed at creating only a few but strong banks to support the rising credit appetite of the economy and cut costs through greater synergy.
Coupled with the two sets of consolidations done in 2018, the latest merger decision will reduce the number of public sector banks to 12 from 27 in 2017.
Tags:
Banking News