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

News Snippets

  • Gujarat government releases all 11 convicts serving jail terms in the Bilkis Bano rape and the subsequent murder of 7 members of the family despite the Centre issuing guidelines against releasing rapists and those serving life terms
  • Government data shows that wholesale inflation has further eased to 13.93% in July. It had climbed to 16.63% in May before declining to 15.18% in June
  • Bihar ministry expanded with 31 new ministers - 16 from RJD and 11 from JD(U)
  • 5G services likely to be rolled out in August with all three telcos - Jio, Airtel and VI readying their infrastructure post the auctions for spectrum
  • FIFA suspends Indian football body due to "outside interference"
  • Finance ministry will review the new expemtion-free tax regime to make it more attractive for taxpayers and simplify the tax laws
  • India's next chief justice, Justice U U Lalit has said that verdicts must percolate quickly to the ground level for justice to be effective and fast
  • Nawa-e-Ghawa-e-Hind, the Indian mouthpiece of al-Qaida, has asked Indian Muslims to bring Nupur Sharma 'to justice' for her blasphemy against the Prophet
  • Government says BSNL will be upgraded to 4G, 5G only with Indian technology, asks PSU management to forget loyaties it had in the past
  • President Draupadi Murmu lauds India's Covid fight and economic resilience
  • Devender Fadnavis gets home and finance as portfolios are allocated in Maharashtra
  • Mamata Banerjee rallies behind arrested TMC leader Anubrata Mondal, says he has done no wrong and BJP is trying to weaken TMC
  • Sachin Tendulkar says sports has helped smash patriarchy and societal stigma
  • Billinaire investor Rakesh Jhunjhunwala dies at 62
  • Himachal Pradesh assembly clears the anti-conversion bill
Bus carrying ITBP personnel falls into river in J&K: 7 dead and several injured /////// Kashmiri Pandit killed and brother injured in a terror attack in Shopian in J&K
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.