Finance ministry has called a meeting with chief executives of ten public sector banks, on Friday.
The
National Democratic Alliance (NDA) government has readied its mega
plan for merging multiple set of public
sector banks (PSB) and is set to make an announcement anytime
soon, according to multiple sources.
The
department of financial services in the finance ministry has called a
meeting with chief executives of ten public sector banks, which are
seen as top contenders for merger, on Friday.
The
banks invited for consultations on Friday are: Union Bank of India,
Canara Bank, Punjab National Bank, United Bank, Oriental Bank of
Commerce, United Bank, Allahabad Bank, Corporation Bank, Syndicate
Bank and Andhra Bank.
“The
PSB merger will be announced anytime soon as part of the government's
reforms agenda,” said a top source familiar with the development.
Punjab
National Bank, Union Bank of India and Canara Bank might be banks
which will be subsuming other PSBs.
“It
looks like PNB will be merged with three more banks, including Andhra
Bank and Oriental Bank of Commerce,” another source said.
In
her press briefings recently, Finance Minister Nirmala
Sitharaman has been dropping hints of two more set of reform
measures that the government is set to announce.
For
the first time, under the Narendra Modi government’s tenure, two
set of PSB mergers took place — One, five associate banks and
Bharatiya Mahila Bank merged with State Bank of India (April 2017),
and two, Dena Bank, Vijaya Bank merged with Bank of Baroda which came
into effect from April 1 this year.
The
central government has to consult the RBI before formulating a plan
for PSB merger, according to the Banking Companies (Acquisition and
Transfer of Undertakings) Acts of 1970 and 1980.
Sources
said the central government has already consulted the RBI regarding
its merger plans earlier this year.
Business Standard
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