oppn parties Breaking: Will There Be Mega-Mergers Of PSU Banks In A Couple Of Days?

News Snippets

  • Jamiat moves Supreme Court to grant SC status to Dalit Muslims
  • Maharashtra Police receive 12 lakh applications for 18000 vacancies
  • A mob of students try to attack a pregnant teacher in Assam, 22 suspended
  • Congress chief Mallikarjun Kharge likens PM Modi to Ravan
  • DMK says CAA is against the Tamils and also India's secular fabric
  • Maternal mortality ratio in India improved from 130 in 2014-16 to 97 in 2018-20
  • SC dismisses a PIL seeking 'doubling' of judges to clear pendency, says without matching infrastructure, increasing the number of judges will have no effect
  • Iran, which is the top buyer of Indian tea, has stopped orders due to "geopolitical reasons" according to traders
  • Vistara to merge with Air India
  • RBI to introduce pilot scheme of digital rupee for retail use from December 1
  • The Roys resign from the holding company of NDTV giving full control to Gautam Adani
  • Stocks continue to scale new heights: Sensex gains 177 points to close at a new alltime high of 62681 and Nifty gains 55 points to 18618
  • India play New Zealand in the 3rd and final ODI today
  • Space tech startup Angikul Cosmos announced the launch of India's first private launchpad at Sriharikota in Andhra Pradesh
  • Rahul Gandhi says both Ashok Gehlot and Sachin Pilot are assests to the Congress
Israeli filmmaker Nadav Lapid, chairman of the jury at IFFI in Goa, calls The Kashmir Files a vulgar movie and propoganda material, Israeli envoy Naor Gilon criticizes him
oppn parties
Breaking: Will There Be Mega-Mergers Of PSU Banks In A Couple Of Days?

By Sunil Garodia

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator.

A freelance journalist and researcher, Pratim Ranjan Bose (@pratimbose), has tweeted that all PSU bank officers have been asked by the government to remain available for duty on Saturday, 10th August and Sunday, 11th August. This, he says, points to a major disruption in the banking sector. He says there might be a merger of PSU banks to create 4 or 5 mega entities on the lines of China. He also reports that the PSU bank chiefs are having a meeting with the Department of Financial Services under the Finance Ministry, after having met Finance Minister Nirmala Sitharaman a couple of days ago. He also reports that tests have been carried out to synchronize the core banking CBS systems of which there are two kinds in use. The SBI and some other banks use TCS developed BaNCS while the Bank of Baroda and some others use Finacle developed by Infosys.

If this report turns out to be true and a major disruption in the form of mega-mergers is carried out, the government would have made its first big move in the financial services sector. Indian PSU banks have eroded most of their capital due to bad loans. The funds needed for recapitalization are huge and unavailable. Hence, merging them to form big entities will solve many problems, provided economies of scale are availed, multiple branches are closed down and staff strength whittled down to the optimum required. These banks will be able to compete with their global peers and not shy away from global deals. If the banking system is cleaned and if banks start lending again, the economy might yet recover from the debilitating state it is in now.