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

News Snippets

  • World Boxing: Saweety Boora and Nitu Ghanghas win gold, Nikhat Zareen adn Lovelina Borgohain will feature in the finals today
  • Swiss Open badminton: Satwik-Chirag reach the finals
  • WPL: Delhi Capitals to play Mumbai Indians in the finals today
  • ISSF World Shooting: Manu Bhaker wins bronze in 25m pistol, her first medal in two years
  • Finance Bill passed by Lok Sabha in 45 mins with 64 amendments without any discussion amid protest by opposition parties
  • EC to decide when to hold bypolls in Wayand as the seat has fallen vacant due to Rahul Gandhi's immediate disqualification
  • As Rahul gandhi stands disqualified from Parliament, he may have to vacate the Tughlaq Road bungalow
  • 14 Opposition parties have filed a petition in the Supreme court to lay pre- and post- arrest guidelines for Central investigating agencies
  • BJP says left with no alternative after court order as law requires immediate disqualification on conviction
  • Most Opposition parties united, say Rahul Gandhi's disqualitfication not right, government targeting opposition
  • Finance Minister Nirmala Sitharaman announced that a panel led by the Finance Secretary will review the National Pension Scheme (NPS)
  • Supreme Court rules that if someone remains a member of an outfit banned under UAPA, he or she will be liable to prosecution and a two-year jail term
  • India's foreign exchange reserves rose by $12.8bn in one week to touch $572bn
  • Centre raised the securities transaction tax on certain derivatives to control excessive speculation and increase revenue
  • Long term tax benefit for debt MF investors removed from April 1, no indexation will be available and income slab will determine tax
Nitu Ghanghas (48Kg) and Saweety Boora (81Kg) crowned World Champions in World Boxing tournament at Delhi /////// Nikhat Zareen and Lovlina Borgohain to take the ring in the finals today
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.