 |
| Merger of 10 Public Sector Banks PSBs into 4 to come into force from April 1: RBI |
Merger of 10 Public Sector Banks PSBs into 4 to come into force from April 1: RBI
Reserve Bank of India (RBI) has said that the merger of 10 public sector banks (PSBs) into four will come into force from April 1. The branches of merging banks will operate as of the banks in which these have been amalgamated.
The government on March 4 had notified the amalgamation schemes for 10 state owned banks into four as part of its consolidation plan to create bigger size stronger banks in the public sector.
As per the scheme, Oriental Bank of Commerce and United Bank of India will be merged into Punjab National Bank; Syndicate Bank into Canara Bank; Allahabad Bank into Indian Bank; and Andhra and Corporation banks into Union Bank of India.
The amalgamation would be effective from 1.4.2020 and would result in creation of seven large PSBs with scale and national reach with each amalgamated entity having a business of over Rupees Eight lakh crore.
Read: World Bank and India Sign USD 88 million loan agreement for Inland Water Transport Project in Assam
The Mega consolidation would help create banks with scale comparable to global banks and capable of competing effectively in India and globally. Greater scale and synergy through consolidation would lead to cost benefits which should enable the PSBs enhance their competitiveness and positively impact the Indian banking system.
In addition, consolidation would also provide impetus to amalgamated entities by increasing their ability to support larger ticket-size lending and have competitive operations by virtue of greater financial capacity.
The adoption of best practices across amalgamating entities would enable the banks improve their cost efficiency and risk management, and also boost the goal of financial inclusion through wider reach.
भारतीय रिजर्व बैंक ने 10 सार्वजनिक क्षेत्र के बैंकों {PSBs} को विलय की मंजूरी दी
- पंजाब नेशनल बैंक में ओरिएंटल बैंक ऑफ कॉमर्स और यूनाइटेड बैंक ऑफ इंडिया का विलय
- सिंडिकेट बैंक का केनरा बैंक में विलय
- आंध्र बैंक और कॉर्पोरेशन बैंक का यूनियन बैंक ऑफ इंडिया में विलय
- इंडियन बैंक में इलाहाबाद बैंक का विलय
0 Comments