Nirmala Sitharaman Press Conference LIVE Updates: Number of PSBs declines to 12 from 27 after consolidation: Finance Minister

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Nirmala Sitharaman Press Conference LIVE Updates: Number of PSBs declines to 12 from 27 after consolidation: Finance Minister
  • 17:13 (IST)

    'Will continue with Bank of India, Central Bank' 

  • 17:11 (IST)

    Big banks with enhanced capacity to increase credit 

  • 17:09 (IST)

    Number of PSBs declines to 12: Finance Minister

    In 2017, where there were 27 PSBs, there are now only 12 PSBs operating to target the $5 trillion economy, said Sitharaman

  • 17:06 (IST)

    'Will infuse about Rs 16,000 cr in PNB, Rs 11,700 cr in Union Bank: Sitharaman 

  • 17:04 (IST)

    'Longer terms will be given to directors on management panels'

    Boards of the PSBs will be given a mandate for the training of directors, both for induction and specialisation purposes, said Sitharaman. Longer terms will be given to directors on management committees to ensure continuity, she added.

  • 17:00 (IST)

    'PSBs will have to appoint chief risk officer'

    The PSU banks' boards will be given flexibility to introduce CGM, said the finance minister. "The state-run banks will have to appoint a chief risk officer, who will be provided market-level compensation," added Sitharaman. 

    She further said that for improving governance of the PSBs, boards will be given flexibility to enhance sitting fees of non-official directors. 

  • 16:58 (IST)

    'IOB, UCO Bank, Bank of Maharashtra to continue to operate' 

    Finance Minister Nirmala Sitharaman said that in order to strengthen the regional presence, Indian Overseas Bank, UCO Bank, Bank of Maharashtra, and Punjab and Sind Bank will continue to operate due to their strong regional banks.

  • 16:54 (IST)

    'Indian Bank, Allahabad Bank to merge'

    Indian Bank and Allahabad Bank will merge to form the seventh-largest PSB with a business of Rs 8.08 lakh crore, she said.

  • 16:52 (IST)

    Union Bank, Andhra Bank, Corporation banks to merge

    Union Bank of India, Andhra Bank and Corporation Bank will merge to become the fifth-largest PSU bank with a business of Rs 14.59 lakh crore, said the finance minister adding there will be large cost reduction due to potential network overlap.

  • 16:49 (IST)

    'Canara Bank to merge with Syndicate Bank'

    Canara Bank will merge with Syndicate Bank to create fourth-largest public sector bank with Rs 15.20 lakh cr business, the finance minister said. 

  • 16:48 (IST)

    PNB to be merged with Oriental Bank of Commerce, United Bank

    Punjab National Bank (PNB), Oriental Bank of Commerce and United Bank to merge to form India's second-largest bank, said Sitharaman. PNB, Oriental Bank of Commerce, United Bank merger to create bank with Rs 17.95 lakh cr business and 11,437 branches, she said.

  • 16:33 (IST)

    'Banks with enhanced capacity to increase credit'

    Banks with enhanced capacity to increase credit, with a strong presence and global reach is the aim to unlock potential with consolidation, said the finance minister.

  • 16:29 (IST)

    Enhanced profitability: Finance Minister

    "Of total 18 PSBs, 6 showed profitability in Q4FY19. Now 14 are profitable in Q1FY19," she said. On the merger of Bank of Baroda, Dena Bank and Vijaya Bank, Sitharaman said that no retrenchment of any staff will happen. Best practices were implemented, she added.

  • 16:27 (IST)

    Record levels of loan recovery reached: Nirmala Sitharaman

    Early signal warning reading is being implemented for every loan which is over Rs 250 crore, she said. Banks were overexposed to corporate, and now there is a healthy mix. Quality of tier - I capital has been implemented. Non-executive chairman should be introduced in all banks, said FM Sitharaman.

    Record levels of loan recovery has been reached. It has now crossed Rs 1.2 lakh crore. Gross NPAs have come down. The asset quality has improved. They are now at Rs 7.90 lakh crore.

  • 16:26 (IST)

    Retail, MSME loan management systems being implemented: Finance Minister

    Nirmala Sitharaman said that foreign branches are being rationalised. "Retail and MSME loan management systems are being implemented," she said. SWIFT based transcations are linked to core banking system to make sure no Nirav Modi like situation is taking place, she added.

  • 16:22 (IST)

    About 3.38 lakh shell companies closed: Nirmala Sitharaman

    The finance minister said, "We need to lay a strong foundation for the financial sector." 

    About 3.38 lakh shell companies have been closed, she said. Sitharaman said that the resolutions for stressed assets are happening through the IBC. "Consortiums of banks which can fund projects are now limited to 7 to 9 banks no matter how big the project it is," said the Finance Minister. 

  • 16:20 (IST)

    'Of Rs 2.7 trillion, Rs 1.9 trillion is credit availabiltiy'

    "Today, as we stand, of the Rs 2.7 trillion we are today, of which Rs 1.9 trillion is the credit availabiltiy," said FM Sitharaman.

  • 16:19 (IST)

    8 PSBs launch their repo-linked products: Finance Minister

    "As a recap, we have previously covered that eight PSBs have launched their repo-linked products, the time-bound return of loan documents by PSBs, the facilitation tracking of loan application, especially for SMEs are being carried out", she said 

  • 16:17 (IST)

    Product launches by PSU banks: FM Sitharaman

    Finance Minister Nirmala Sitharaman says that there have been product launches by the PSU banks post last week announcements.

  • 16:14 (IST)

    Finance Minister Nirmala Sitharaman addresses press conference

  • 16:05 (IST)

    Govt likely to announce bank recapitalisation plan 

    The government is expected to announce bank racapitalisation plan details shortly. 

  • 16:04 (IST)

    Nirmala Sitharaman meets PSU banks heads

    Finance Minister Nirmala Sitharaman is meeting the PSU bank chiefs amid consolidation rumours. Another big merger of the PSBs is on the cards, said media reports. Allahabad Bank, Central Bank and Indian bank merger on the cards?

FM Nirmala Sitharaman Press Conference; LATEST Updates: Finance Minister Nirmala Sitharaman said that Punjab National Bank (PNB), Oriental Bank of Commerce and United Bank would merge to form India's second-largest bank. PNB, Oriental Bank of Commerce, United Bank merger would create bank with Rs 17.95 lakh cr business and 11,437 branches, she said.

She said that 3.38 lakh shell companies have been closed. The resolutions for stressed assets are happening through the IBC. Consortiums of banks which can fund projects are now limited to 7 to 9 banks no matter how big the project it is.

Earlier in the day, she held a meeting with the heads of the public sector banks (PSBs). It is expected that there will be a major announcement on the merger plan of the PSBs.

The Narendra Modi government has reportedly prepared a major plan for merging multiple sets of PSBs and may announce it anytime soon, said a report in Business Standard quoting sources.

The department of financial services in the finance ministry on Friday convened a meeting of chief executives of at least ten PSBs, which are likely part of the merger plan, said the report.

 Nirmala Sitharaman Press Conference LIVE Updates: Number of PSBs declines to 12 from 27 after consolidation: Finance Minister

File image of Finance Minister Nirmala Sitharaman. Reuters.

These ten PSBs are: Punjab National Bank, Union Bank, Canara Bank, United Bank of India, Allahabad Bank, Indian Bank, Oriental Bank of Commerce, Syndicate Bank, Corporation Bank and Andhra Bank, according to Moneycontrol.

Meanwhile, shares of the PSBs were trading mixed on the National Stock Exchange (NSE) in the afternoon, after reports said the government may announce the mega plan for the merger of the state-run banks today.

Oriental Bank of Commerce, Central Bank of India, Syndicate Bank and Allahabad Bank were up in the range of 3 per cent to 6 per cent on the NSE.

In the previous term of the Modi government, five associate banks and Bharatiya Mahila Bank were merged with State Bank of India. Similarly, Dena Bank, Vijaya Bank merged with Bank of Baroda which came into effect from 1 April 2019.

According to the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980, the government must consult the Reserve Bank of India (RBI) before planning of merger plan.

Updated Date: Aug 30, 2019 17:21:28 IST