Arun Jaitley says India needs fewer, mega banks to achieve economies of scale in post-Budget address to RBI board

Finance Minister Arun Jaitley on Monday said India needs fewer and mega banks to achieve economies of scale in the sector

Press Trust of India February 18, 2019 15:23:28 IST
Arun Jaitley says India needs fewer, mega banks to achieve economies of scale in post-Budget address to RBI board
  • The government earlier this year approved the merger of Dena Bank and Vijaya Bank with Bank of Baroda

  • The amalgamation, the first-ever three-way consolidation of banks in India, would be effective from 1 April, 2019

  • After the merger, the number of public sector banks will come down to 18

New Delhi: Finance Minister Arun Jaitley on Monday said India needs fewer and mega banks to achieve economies of scale in the sector.

After the amalgamation of five associates and Bharatiya Mahila Bank with SBI in 2017, the government earlier this year approved the merger of Dena Bank and Vijaya Bank with Bank of Baroda.

"With the experience in the past really has been of SBI merger, now it is the second one which is taking place," Jaitley said after the customary post-budget address to the RBI board.

Arun Jaitley says India needs fewer mega banks to achieve economies of scale in postBudget address to RBI board

File photo of Union finance minister Arun Jaitley. PTI

"India needs fewer and mega banks which are strong because in every sense, from borrowing rates to optimum utilisation, the economies of scale as far as the banking sector is concerned are of great help," he said.

The Union Cabinet last month approved the merger of the three banks to create the country's third-largest lender after SBI and ICICI Bank.

The amalgamation, the first-ever three-way consolidation of banks in India, would be effective from 1 April, 2019.

After the merger, the number of public sector banks will come down to 18.

In September 2018, the Alternative Mechanism, headed by Jaitley, gave in-principle approval for the merger of the three banks to create a global-sized lender.

Updated Date:

also read

IBPS SO Recruitment 2022: Online registration for 710 vacancies ends today
Education

IBPS SO Recruitment 2022: Online registration for 710 vacancies ends today

Through this recruitment drive, IBPS aims to fill up a total of 710 vacancies. According to the official notice, the online preliminary examination will tentatively take place on 24 December/31 December 2022, while the main exam will be conducted on 29 January 2023.

SBI Recruitment 2022: Online registration opens for 55 Manager posts at sbi.co.in; direct link here
Education

SBI Recruitment 2022: Online registration opens for 55 Manager posts at sbi.co.in; direct link here

Aspirants should not be less than 25 years of age and not more than 35 years as on 30 June 2022. More details and information are mentioned in the official notification.

These tips will help you organise budget-friendly wedding; details here
Business

These tips will help you organise budget-friendly wedding; details here

When planning a destination wedding, if you want to let your guests stay at a hotel or resort, the cost of room service can exceed your budget