PSU bank merger: Govt to go ahead without further wait, says Jaitley

Five associate banks and Bharatiya Mahila Bank merged with SBI in April this year.

The government is looking at the possibility of further consolidation in the public sector banking space without waiting for improvement in their finances, as per a PTI report.

Five associate banks including State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Mysore (SBM), State Bank of Patiala (SBP) and State Bank of Travancore (SBT), besides Bharatiya Mahila Bank (BMB), merged with SBI in April this year.

"Internally there was a thinking after the SBI amalgamation took place to wait for the rest till the health of the banks improve.

"We have now relooked at the whole system and there are some institutions within the public sector banks which can be consolidated even in the present circumstances. We are seriously examining them," Finance Minister Arun Jaitley told CNBC TV18.

Even RBI Governor Urjit Patel had earlier said that the Indian banking system could be in a better condition if some public sector banks are consolidated to have fewer but healthier entities in order to help them deal with the problem of stressed assets.

 
Source: PTI

Event date: 
Tuesday, June 6, 2017

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