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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

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.

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