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

Finance Minister Nirmala Sitharaman is holding a meeting with the heads of the public sector banks (PSBs) today. It is expected that there will be a major announcement on the merger plan of the PSBs.

FP Staff August 30, 2019 17:14:35 IST
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Nirmala Sitharaman Press Conference LIVE Updates: Number of PSBs declines to 12 from 27 after consolidation: Finance Minister

Highlights

LIVE NEWS and UPDATES

Aug 30, 2019 - 17:13 (IST)

'Will continue with Bank of India, Central Bank' 

Aug 30, 2019 - 17:11 (IST)

Big banks with enhanced capacity to increase credit 

Aug 30, 2019 - 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

Aug 30, 2019 - 17:06 (IST)

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

Aug 30, 2019 - 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.

Aug 30, 2019 - 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. 

Aug 30, 2019 - 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.

Aug 30, 2019 - 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.

Aug 30, 2019 - 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.

Aug 30, 2019 - 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. 

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:

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