Changes to expect after FM’s announcements on PSU bank mergers

Finance Minister Nirmala Sitharaman with finance secretary Rajiv Kumar during a press conference in New Delhi | PTI

The next major merger has been announced between Canara Bank and Syndicate bank to create the fourth largest PSB in India with a combined business of Rs 15.20 lakh crore.

The FM also announced that banks will be infused with capital to be able to cover mergers and compliance costs.

Finance Minister Nirmala Sitharaman during the press conference to announce the merger of banks.

Post consolidation, the number of PSU banks will come down from 27 to 12 and this, according to Sitharaman, was "the right number of PSU banks to have". "We're trying to build the NextGen banks".

She also said that loan recoveries had hit a recover level of Rs.1,21,076 crore, while bad loans had come down from Rs. 8.65 lakh crore to Rs. 7.90 lakh crore. Andhra Bank is small and Corporation Bank is more strong in south as well as in other areas.

In April this year, Bank of Baroda amalgamated with Dena and Vijaya. Till now, risk management has not been given adequate focus in government banks that reflected in their asset quality.

The big banks have enhanced the capacity to increase credit, Sitharaman said in prelude to the announcement of new bank mergers.

FSU Football right to move opener site despite uncertainty of storm
Florida State University now gets to have its college football season opener at home, thanks to Hurricane Dorian . Per the Tallahassee Democrat, Boise State was scheduled to arrive in Jacksonville at 8 p.m.

Elsewhere Andhra Bank and Corporation Bank are to merge with Union Bank, while Indian Bank will merge with Allahabad Bank.

She also said liquidity support to NBFCs and housing finance companies has improved as the partial credit guarantee scheme has been executed.

Announcing a slew of measures to empower the public sector banks, Nirmala Sitharaman said a board committee of nationalised banks will appraise the performance of general managers and higher positions.

The UCO Bank will get Rs 2,100 crore, the United Bank of India Rs 1,600 crore and the Punjab & Sind Bank Rs 750 crore. This was the second announcement within a week by the finance minister to revive the economy which is facing a slowdown. "Bank of India with Rs 9.3 lakh crore of business size and Central Bank with Rs 4.68 lakh crore of business size will continue", she added.

The finance minister also unveiled governance reforms in public sector banks, saying their boards will be given autonomy and enabled to do succession planning.

Modi's government has vowed to clean up the banking sector and reduce the number of state-run banks. In 2018, the government chose to merge the Bank of Baroda with the Vijaya Bank and the Dena Bank. In 2017, the State Bank of India was merged with five of its associate banks and the Bharatiya Mahila Bank.

During the presser, Sitharaman and the bureaucrats resent made it clear that there are no immediate plans on cards to cut government's stake in these banks below 51 percent.

Related News:



Most liked

No negotiation on South China Sea: Beijing tells Philippines
But these resources are in waters that China and the Philippines are now contesting. He also pledged to speed up joint maritime oil and gas exploration with China.

Petition To Stop Boris Johnson Suspending Parliament Reaches 1.5m Signatures
But the suspension is generally shorter and rarely takes place at such a constitutionally charged time. Marie Rimmer, MP for St Helens South and Whiston, said the decision is "completely unacceptable".

Alexis Sanchez Making Financial Sacrifice To Seal Inter Move
Manchester United signed Sanchez in a swap deal from Arsenal in the the 2018 January transfer window following months of speculation.

Brad Pitt Talks Toxic Masculinity and the 'Barrier That's Created'
Gray said he thinks its important that actors don't "worry about being liked or hated or sympathetic or unsympathetic". The film will be released in South Africa on 20 September 2019 .

US crude stocks drop 10 million barrels as imports slow
President Donald Trump had announced that China was willing to enter negotiations towards a trade deal. -China trade war. West Texas Intermediate ( WTI ) crude futures fell 40 cents, or 0.7%, to $56.31 a barrel.

China’s 'Routine Rotation' of Troops Sparks Alarm in Hong Kong
Earlier reports and video clips showed that China's paramilitary forces have been assembling in the neighboring city of Shenzhen. Activists targeted the representative office in July, daubing anti-China slogans on its walls.

Was 2019 Rory McIlroy's best ever season?
It's handsome , I'm here with my wife and her parents and we're having a great time - they went up to the Matterhorn yesterday. Majors into a 101-day period his year and called on golf to imitate tennis and spread the Majors out.

Microsoft disables automatic tablet mode in the latest Windows 10 beta
The search box on the taskbar has shrunk, meanwhile: it's collapsed down into an icon, rather than a persistent box. As of Build 18970, the new separate Cortana app is available to all Fast Ring Insider testers in the U.S.

Brexit: No Deal opponents make pact to try to change law
It turns out Boris Johnson's conversation with the Dutch leader, Mark Rutte, has taken place much earlier than expected. On Sunday, the shadow trade secretary, Barry Gardiner, accused Swinson of being petulant.

China, US discussing fresh trade talks in September
Bond yields remain subdued across the board, signaling the market's concern about a global economic slowdown, Kinahan said. China's Vice Premier Liu He on Monday urged calm after ructions intensified over the weekend.

Italy's Stromboli volcano erupts anew, spewing fiery lava
Wednesday's eruption was stronger than the one in July that killed a hiker and sent tourists jumping into the sea for safety. She told the PA news agency: "We had anchored off Stromboli last night after watching the eruptions for a few hours".

TV icon Valerie Harper loses cancer battle
Harper is survived by her second husband, Tony Cacciotti, and their daughter. I'm ready to go ", she told People magazine after the diagnosis.

Federal Bureau of Investigation seizes infamous photo of Prince Andrew with Jeffrey Epstein accuser
District Judge Richard Berman had said at a hearing on Tuesday that he was legally bound to dismiss the case. Ms Giuffre, who now lives in Australia, has said she was used as a "sex slave" by Epstein.

Ole Gunnar Solskjaer admits Manchester United are short up front
Manchester United and Inter Milan are reportedly in the final stages of a loan deal for Chilean Forward Alexis Sanchez . Several clubs would consider a move for Matic before the European transfer window closes if he's made available.

Two West Nile Cases Reported In Montana
Sleep under a mosquito bed net if air conditioned or screened-in rooms are not available or if you are sleeping outside. There is no specific treatment for West Nile virus infection other than to treat symptoms, the press release said.