Delhi: the Govt. is open to in addition consolidation of banks, relying on needs, minister of state for finance Anurag Thakur has said. Last year, the govt. had introduced mega amalgamation of 10 PSU banks into 4 to cater to the desires of an aspirational and New India.
“We have successfully done the mergers and recapitalisation of banks. Insolvency and Bankruptcy Code (IBC) has been successful, which has brought back more than Rs 4 lakh crore to the banks. Further consolidation or merger will depend on the need,” Mr Thakur told PTI in an interview.
Creation of global sized banks through consolidation will facilitate Modi government’s resolve to make India a USD 5 trillion economy by 2024-25, he said.
Bigger banks would have wider reach, stronger lending capacity and better products and technology to serve customers of New India.
Last year in August, the government had announced merger of United Bank of India and Oriental Bank of Commerce with Punjab National Bank, making the proposed entity the second largest public sector bank (PSB).
Syndicate Bank will be merged with Canara Bank, and Allahabad Bank with Indian Bank. Similarly, Andhra Bank and Corporation Bank will be consolidated with Union Bank of India.
In April 2019, Bank of Baroda in a first three-way merger exercise amalgamated Vijaya Bank and Dena Bank with itself.
