FM Nirmala Sitharaman to address press conference at 4 pm today; likely to announce major plan for merger of PSU banks

In the previous term of the Modi government, five associate banks and Bharatiya Mahila Bank were merged with State Bank of India.

FP Staff August 30, 2019 15:48:27 IST
FM Nirmala Sitharaman to address press conference at 4 pm today; likely to announce major plan for merger of PSU banks
  • The department of financial services in the finance ministry on Friday convened a meeting of chief executives of at least ten PSBs

  • Shares of the PSBs were trading mixed on the NSE in the afternoon after the reports of the govt's plan

  • In the previous term of the Modi government, five associate banks and Bharatiya Mahila Bank were merged with State Bank of India

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.

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.

FM Nirmala Sitharaman to address press conference at 4 pm today likely to announce major plan for merger of PSU banks

File image of Finance Minister Nirmala Sitharaman. PTI

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:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Parliament Updates: Lok Sabha likely to adjourn sine die tomorrow, says PTI
Politics

Parliament Updates: Lok Sabha likely to adjourn sine die tomorrow, says PTI

Parliament LIVE Updates: Speaker Om Birla has extended the Lok Sabha proceedings till 10 pm today. The House is taking up the Zero Hour now

Parliament Monsoon Session: Centre, Oppn trade fire on PM CARES Fund; RS passes bill to punish attacks on health workers
India

Parliament Monsoon Session: Centre, Oppn trade fire on PM CARES Fund; RS passes bill to punish attacks on health workers

In the Lok Sabha, Opposition MPs of the Congress, DMK, TMC, and others opposed the PM CARES Fund, alleging that it lacked transparency

Parliament Updates: Lok Sabha approves Centre's demand for supplementary grants; both houses adjourned till tomorrow
Politics

Parliament Updates: Lok Sabha approves Centre's demand for supplementary grants; both houses adjourned till tomorrow

Parliament LIVE Updates: Finance Minister Nirmala Sitharaman said that additional resources as part of the first demand for excess grants is being used for "people-centric activity and some of the most critical government schemes like the PM Gareeb Kalyan Yojana."