LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

Govt may approve one more PSU bank consolidation by March

Now, the Finance Ministry is looking to replicate the model in the case of other state-run banks so that they reach critical mass to compete with global peers.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Govt may approve one more PSU bank consolidation by March
Union Finance Minister Arun Jaitley addresses a press conference in New Delhi. Photo: IANS
Written By: PTI
Updated: Fri, Jun 09, 2017
06:55 pm
New Delhi, PTI
RELATED NEWS
PM Modi remembers former Finance Minister Arun Jaitley on death anniversary, says ‘miss my friend a lot’ PM Modi remembers former Finance Minister Arun Jaitley on death anniversary, says ‘miss my friend a lot’
Budget 2020: Nirmala Sitharaman pays homage to Arun Jaitley Budget 2020: Nirmala Sitharaman pays homage to Arun Jaitley
How Arun Jaitley made Twitter home to connect with people How Arun Jaitley made Twitter home to connect with people
Arun Jaitley will be remembered for landmark reforms like GST, IBC: SBI Arun Jaitley will be remembered for landmark reforms like GST, IBC: SBI
India Inc mourns Arun Jaitley's demise; Here's what they said India Inc mourns Arun Jaitley's demise; Here's what they said

Enthused by the success of SBI merger, the Finance Ministry is considering clearing another such proposal in the public sector banking space by this fiscal end with a goal to create 4-5 global sized lenders.

Five associate banks and Bharatiya Mahila Bank became part of SBI on April 1, 2017, catapulting the country?s largest lender to among the top 50 banks in the world.

Now, the Finance Ministry is looking to replicate the model in the case of other state-run banks so that they reach critical mass to compete with global peers.

"Consolidation is a must...But decision in this regard would be based on commercially prudent parameters. If the NPA situation gets better, there could be one more merger towards the end of this fiscal," a senior official told PTI.

Toxic loans of public sector banks rose by over Rs 1 lakh crore to Rs 6.06 lakh crore during April-December of 2016-17, the bulk of which came from power, steel, road infrastructure and textile sectors.

Finance Minister Arun Jaitley has on several occasions said India needs 5-6 banks of global size and scale and further consolidation in the banking sector will be done at the appropriate time.

Whenever consolidation happens, it takes into consideration interest of all stakeholders including employees and shareholders, the official said, adding it has to be a win-win for all parties.

A balancing act has to be done before any merger is given clearance by various authorities and regulators, the official added.

The future merger proposals in the banking sector will also require clearance from the Competition Commission of India (CCI) to see if the merged entity is going to create a monopoly.

In the last consolidation drive that saw the light of day in April, CCI nod was needed only in the case of merger of the Bharatiya Mahila Bank (BMB) with SBI. There was no such requirement for merger of associate banks with SBI as they were part of the parent.

The Finance Ministry has sought help of the government think-tank NITI Aayog and global consultancy firms to examine the possibility of next round of consolidation of PSU banks with an aim to create a few lenders of global size and scale.

NITI Aayog's report is expected to set tone of the roadmap for consolidation in the future.

There are factors like regional balance, geographical reach, financial burden and smooth human resource transition that have to be looked into while taking a merger decision, the official said.

The official added that there should not be merger of a very weak bank with a strong bank "as it could pull the latter down".

"There are some low-hanging fruits. Big lenders like Bank of Baroda can take over some turnaround banks in the southern region such as Indian Overseas Bank. Dena Bank could be merged with some large South Indian bank," the official explained.

Five associates and BMB became part of SBI on April 1, 2017, catapulting the country?s largest lender to among the top 50 banks in the world.

State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Mysore (SBM), State Bank of Patiala (SBP) and State Bank of Travancore (SBT), besides BMB, were merged with SBI.

With the merger, the total customer base of the SBI reached around 37 crore with a branch network of around 24,000 and nearly 59,000 ATMs across the country. The merged entity began operation with deposit base of more than Rs 26 lakh crore and advances of Rs 18.50 lakh crore.

The government in February had approved the merger of these five associate banks with SBI. Later in March, the cabinet approved merger of BMB as well. SBI first merged State Bank of Saurashtra with itself in 2008. Two years later, State Bank of Indore was merged with it.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Arun JaitleySBI mergerState Bank of IndiaNiti AayogCompetition Commission of IndiaSBI merger with associatesSBI merger with Bharatiya Mahila Bankconsolidation in banksGross NPABad loansBanking & Financial ServicesEconomy
RELATED NEWS
PM Modi remembers former Finance Minister Arun Jaitley on death anniversary, says ‘miss my friend a lot’ PM Modi remembers former Finance Minister Arun Jaitley on death anniversary, says ‘miss my friend a lot’
Budget 2020: Nirmala Sitharaman pays homage to Arun Jaitley Budget 2020: Nirmala Sitharaman pays homage to Arun Jaitley
How Arun Jaitley made Twitter home to connect with people How Arun Jaitley made Twitter home to connect with people
Arun Jaitley will be remembered for landmark reforms like GST, IBC: SBI Arun Jaitley will be remembered for landmark reforms like GST, IBC: SBI
India Inc mourns Arun Jaitley's demise; Here's what they said India Inc mourns Arun Jaitley's demise; Here's what they said

LATEST NEWS

NURECA Share Price hits 20% UPPER CIRCUIT: Know the reason WHY

Gold price: Resistance, support for MCX Gold REVEALED, check crucial levels

Bihar schools, colleges and other educational institutes to remain closed till THIS date—what Nitish Kumar said

Gold Price outlook, correction, resistance and target—EXPLAINED! This is what Experts say about yellow metal in near to medium term

Mid Cap Picks with Anil Singhvi: Bombay Burmah, Fine Organic and Gujarat Alkalies are Jay Thakkar's top recommendations

FD fraud: SBI issues alert for customers, says avoid THESE things or else you will lose money

Stock Market Outlook: Nifty, Bank Nifty support range REVEALED; Anil Singhvi says global cues, corona cases and FIIs data will be crucial

West Bengal election 2021: LIVE UPDATES! 75.93% voter turnout recorded till 5:24 pm; 4 people killed, 4 injured in firing incidents

India leads US and China, administers 100 million COVID-19 vaccinations doses in 85 days

CBSE exams 2021 cancellation demand: Board has big update for Class 10, 12 students

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved