After SBI, 5 more public sector banks look to merge
The Cabinet’s approval for State Bank of India’s (SBI) merger with its associate banks has given way to other public sector banks (PSB) to follow a similar path.
Banks like Punjab National Bank (PNB), Canara Bank, Union Bank of India (UBI), Bank of India (BOI) and Bank of Baroda (BOB) have submitted their lists to the Government proposing merger with other smaller PSBs.
They also proposed to cut workforce by 10% after the merger but sources told Zee Business that the Government has flatly denied this move.
Not only will the banks have a higher asset strength but also increase in capital base which would enable the banks to give out bigger loans.
Here’s the complete list inclusive of asset and staff strengths the banks will have after the merger between its associates.
Banking sector in India has been suffering for the past few years because of the mounting bad debts problems.
PSBs are also in need of capital infusing higher than the one sanctioned by the Government. Although, Finance Minister Arun Jaitley has promised that banks will be well capitalised.
PSBs need capital infusing of Rs 35,000 crore in the current fiscal.