Cabinet approves plans to merge some state-run banks

Framework for consolidation of public sector banks

Framework for consolidation of public sector banks

Plans are to consolidate a total of 21 public sector banks, with the details of these banks still awaited.

At present, there are 20 public sector banks, apart from State Bank of India.

"After getting in-principle approval, the banks will take steps in accordance with law and SEBI requirements".

"On Saturday, Patel said that the central bank is in dialogue with the government to prepare a package of measures including mergers to enable PSBs to shore up requisite capital in a time-bound manner". The government is reported to be mulling creating six large public sector banks of global scale, also with an aim to help the smaller banks with weaker balance sheets get support from the larger ones with strong finances.

Chelsea line-up ex-Borussia Dortmund boss Thomas Tuchel to replace Antonio Conte
Chelsea are working to appoint Thomas Tuchel as their new manager, according to claims coming from Germany on Wednesday morning.

India's largest bank - State Bank of India (SBI) rose 1.04%, while Bank of Baroda saw a 0.93% rise, followed by IndusInd Bank and Federal Bank at 0.88% and 0.76% rise.

With the consolidation, SBI had to remap their branches and redeploy staff within the consolidated entity.

The merger of the state-run banks should open up more capital generation avenues, both internally and from market, for the merged entity, she said while in an interview with the news agency PTI.

Bhattacharya said after the merger, SBI has moved to a return on equity (RoE) based budgeting, along with risk based budgeting in managing its portfolio. These problems are expected to be seen when government goes on with merging other public sector banks in the country too.

Alcatel U5 HD Revealed Before IFA 2017 Launch
Talking about its software front, the Alcatel U5 HD runs on Google's Android 7.0 Nougat operating system out-of-the-box. Coming to connectivity options, the Alcatel U5 HD includes the 4G LTE (Long Term Evolution), Wi-Fi, Bluetooth.

The names of the banks to be merged will be decided on four major points - profit of the banks chosen, similar geographical coverage, comparable asset quality and capital adequacy ratios.

Merger of public sector banks must increase the role of internal and market resources and thus reduce government's dependency, she explained.

"The objective is to create strong banks and the experience of bank mergers has so far been positive", said Jaitley. And with 21 banks, the complexities will be much more than the SBI merger.

She said that consolidation in the banking sector will lead to greater concentration of payment and settlement flows as there are fewer parties in the financial sector.

Cristiano Ronaldo fumes at 'incomprehensible' upholding of five-match ban
Ronaldo was given an additional four-match ban for shoving the referee in the back after he was shown the red card. He posted the photo of himself pointing downwards along with the message: 'One more incomprehensible decision.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.