Finance Minister Nirmala Sitharaman has announced the mergers of several banks into "consolidated banks" as she addressed a press conference amid an economic slowdown. Oriental Bank of Commerce and United Bank to be merged with Punjab National Bank, she announced. Syndicate Bank to be merged with Canara Bank. Union Bank of India to be merged with Andhra Bank and Cooperation Bank. Indian Bank is merged with Allahabad Bank.
Here are the highlights of Nirmala Sitharaman's address:
After the mega PSU bank consolidation drive, there will be 12 public sector banks in the system, as against 27 in 2017: Nirmala Sitharaman
#PSBsFor5TrillionEconomy through reforms, financial strength, technology, consolidation & strong governance. ₹55,250 Cr. upfront capital for credit growth & regulatory compliance to support economy.@PMOIndia @FinMinIndia @PIB_India pic.twitter.com/ElQJsrrHrA
- Rajeev kumar (@rajeevkumr) August 30, 2019
Public sector banks' boards empowered to recruit chief risk officer at market-linked compensation to attract best available talent, says Finance Minister Nirmala Sitharaman
We need banks to sustain growth potential. Banks with strong national presence, global reach is what we want. Scaling up will allow them resources. Thus lending costs will come down. It will help in building $5 trillion economy: Nirmala Sitharaman
Consolidated PNB, OBC and United Bank to be 2nd largest public sector bank with ₹18 lakh crore: Nirmala Sitharaman
Consolidated Union+Andhra+Corporation Banks to be 5th largest #PSB with ₹14.6L Cr. business & 4th largest branch network in India. Strong scale benefits to all 3 with biz becoming 2 to 4½ times that of individual bank. @PMOIndia @FinMinIndia @PIB_India #PSBsFor5TrillionEconomy pic.twitter.com/GWjg7WEd1U
- Rajeev kumar (@rajeevkumr) August 30, 2019
Consolidated Indian & Allahabad Banks to be 7th largest #PSB with ₹ 8.08 lakh cr. business. Strong scale benefits to both with business doubling. High CASA & lending capacity combined in consolidated bank. @PMOIndia @FinMinIndia @PIB_India #PSBsFor5TrillionEconomy pic.twitter.com/fRercARJIU
- Rajeev kumar (@rajeevkumr) August 30, 2019
Gross bad loans of public sector banks have come down to Rs 7.9 lakh crore from Rs 8.65 lakh crore at December-end 2018: Finance Minister Nirmala Sitharaman
In place of fragmented lending capacity with 27 PSBs in 2017, now 12 #PSBs post consolidation. बड़े बैंक अब अपना लक्ष्य रखेंगे global मार्केट पर, मँझले बैंक बनेंगे राष्ट्रीय स्तर के और कुछ बैंक स्थानीय नेतृत्व करेंगे। @PMOIndia @FinMinIndia @PIB_India #PSBsFor5TrillionEconomy pic.twitter.com/Z4dcyZOG5f
- Rajeev kumar (@rajeevkumr) August 30, 2019
