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New Delhi, July 1 (PTI) The Ministry of Finance dusted off public sector merger proposals and began weighing various options to create a few more banks of SBI size, sources said.
Last month, the State Bank of India (SBI) made two presentations to officials of other public sector lenders to share its experience consolidating five SBI-badociated banks and Bharatiya Mahila Bank [19659003]. but she also pointed out that the fragmented approach of the banks was acting as an obstacle to their growth.
Various permutations and combinations are examined, sources said, but added that no decision had yet been taken
. Reduced bank interest, according to sources, a positive development has already taken place.
Last week, the Irdai Insurance Regulator allowed LIC to take 51% of IDBI Bank's capital as part of
Last year, the Department of Financial Services had written to all UAP lenders to inform them of the government's decision to create a ministerial group charged with facilitating consolidation in the public banking area.
encouraged the state lenders to opt for the merger so that there are fewer banks stronger.
The Ministry wants the banks to undertake an internal exercise for the best matchmaking and propose the idea of an alternative mechanism (Banks should badyze the regional balance, geographical scope, compatibility computer, financial burden and the transition of human resources while firming up the merger proposal for the ministerial panel.
Last year, the Cabinet of the Union in August, decided to put in place an alternative mechanism to oversee the proposals for accelerated consolidation of public sector banks (PSBs) to create larger and stronger lenders
To accelerate consolidation, the government has exempted nationalized bank mergers from the government. obtaining an approval from the CCI for fair trade.
The exemption will be applicable for ten years and comes at a time when several experts and even policymakers have spoken of the need for consolidation in the banking sector, especially among state-owned banks. PTI DP MR MR
This is an unedited, unformatted feed from the Press Trust of India thread
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