BREAKING NEWS

BREAKING NEWS ""**If we want PSU bank to compete with Pvt bank ---Give them a break Saturday first*** DA FOR BANKER FROM FEBRUARY 2023 SEE DETAILS CHART FOR OFFICER AND WORKMAN***Outcome of Today’s meeting with IBA - 31.01.2023***All India Bank Strike 27.06.2022******PLEASE VISIT INDIAN TOURISM CULTURE & HERITAGE *****NITI Aayog finalised names of Two public sector banks and one general Insurance Co. for privatisation****No economic reason to privatise PSU banks---post date 24.05.2021******Mobile users may soon be able to switch from postpaid to prepaid and vice versa using OTP*****India May Privatise or Shut 46 PSUs in First 100 Days, Says NITI Aayog's Rajiv Kumar----We should start with the banks*****Expected DA for Bank Employee from August 2019 is 24 slab to 29 slab*****RTGS time window from 4:30 pm to 6:00 pm. with effect from June 01.06.2019******WITHOUT CUSTOMER'S CONSENT BANK CAN NOT USE AADHAAR FOR KYC ----RBI***** Salient features of Sukanya Samriddhi Account---Who can open and how?******OBC posts 39% rise in Q4 profit, OBC readt tWITHOUT CUSTOMER'S CONSENT BANK CAN NOT USE AADHAAR FOR KYC ----RBI o take another Bank--MD MUkesh Jain*******DA FOR BANKER FROM NOV 2018 IS INCREASE 66 SLAB I.E 6.60%****40,000 STANDARD DEDUCTION IN YOUR TAX - IS A GREAT DRAM/BLUFF BY JAITLY SEE DETAILS+++++++Cabinet approves plans to merge PSU banks-The final scheme will be notified by the central government in consultation with the Reserve Bank. post date 23.08.2017****IBA to restrict the negotiations on Charter of Demands of Officers' Associations up to Scale-III only post dated 07.07.2017*****

VISITOR FROM WORLD

Free counters!

YOU ARE VISITOR

Blog Archive

LIVE

BREAKING NEWS ""**If we want PSU bank to compete with Pvt bank ---Give them a break Saturday first****Outcome of Today’s meeting with IBA - 31.01.2023*********

Tuesday, May 16, 2017

Punjab National Bank, Bank of Baroda, Bank of India and Canara Bank are being seen as the lead bankers to merge other banks urjit patel


PSU, RBI, Urjit Patel, Banking consolidation in India, PSU banks, SBI, finance ministry, latest news, latest india news, business news, indian express

The finance ministry sees a scope of merger among 3-4 more public sector banks — in what could be the second wave of consolidation in the banking sector. Sources said the government will work on a twin-pronged strategy that prefers mergers among strong banks while at same time shrinks the capital base and balance sheet of the weak banks. The Centre has already started signing memorandum of understanding (MoU) with the state-owned banks linking capital infusion to performance. Non-performing banks are being asked to sell assets, close non-profitable branches and shrink their balance sheet, in an attempt to reduce the strain on budgetary resources, finance ministry sources said.
“There are 3-4 PSU banks where we have scope for consolidation. The discussions on merger are yet to fructify but the preference is for a merger among relatively strong banks instead of consolidating a weak bank into a strong bank,” a finance ministry official said. Punjab National Bank, Bank of Baroda, Bank of India and Canara Bank are being seen as the lead bankers to merge other banks with themselves, the sources said. The government has already sounded out a couple of large banks for possible acquisitions in the PSU banking space.
“There have been a number of discussions on possible mergers but these are really at initial stages. Ultimately, it is the government which has to take a call on these and we can only look to implement it,” a senior executive at the Punjab National Bank said on condition of anonymity, without divulging any further details.
Last month, the RBI Governor Urjit Patel said in New York that the banking system in India could be better off if some public sector banks are consolidated so as to have fewer but healthier entities. Patel had also said that consolidation of banks could also entail sale of real estate where branches are redundant as well as offering voluntary retirement schemes to manage headcount and adding younger, digital-savvy personnel.
Country’s largest lender State Bank of India has completed the process of merging State Bank Of Bikaner & Jaipur, State Bank Of Hyderabad, State Bank Of Mysore, State Bank Of Patiala and State Bank Of Travancore and Bharatiya Mahila Bank with itself. In the next leg of consolidation, while a merger among relatively strong banks is likely, weak banks are expected to shrink in their size. This is expected to reduce the pressure on the government of providing capital to the banks. In 2015, Centre launched the Indradhanush programme, to infuse Rs 70,000 crore into public banks. The government estimates that public banks would require about Rs 1.8 lakh crore of capital. This year Centre will put in Rs 10,000 crore into public banks.
In his press briefing last week on the ordinance empowering the RBI to speed up the NPA resolution process, finance minister Arun Jaitley indicated that the weak banks will have to sell assets, reduce overheads, shut loss-making branches, among others. “We are also planning the process that when the MoUs are signed, with the public sector banks which seek capitalisation, that there would be some specific provision in those MoUs also, which would be incorporated. This would relate to immediate cash release initiatives, such as sale of assets, closure of non-profitable branches, reduction of overheads, business turnaround initiatives, such as strengthening of the credit appraisal process under active NPA management and several others,” Jaitley had said.
‘PERFORMANCE-LINKED CAPITAL INFUSION’
* The Centre has already started signing memorandum of understanding (MoU) with the state-owned banks linking capital infusion to performance
* Non-performing banks are being asked to sell assets, close non-profitable branches and shrink their balance sheet, to reduce the strain on budgetary resources

No comments:

Rs.50 Lakh Stolen from Axis Bank Cash Van in Kerala

n a daring incident that took place in Uppala, Kasaragod, Kerala on Wednesday, ₹50 lakh was stolen from a van while it was transporting cash...

script async src="https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js">