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23
August 2017
 |
Arun Jaitley (The Total Investment & Insurance
Solutions)
In
the context of massive accumulation of bad loans by state-run banks, the Union
Cabinet on Wednesday gave an "in principle" approval for their
consolidation by merging some of the public sector lenders, Finance Minister
Arun Jaitley announced.
"The
cabinet approved the constitution of an alternate mechanism that will oversee
proposals with regard to consolidation of banks, which will come from the PSBs
(public sector banks)," Jaitley told reporters here following the cabinet
meeting.
"As
of today, there are 20 PSBs plus the State Bank of India (SBI)," he said, adding
that the SBI had recently concluded the merger with its associate banks and
become a larger consolidated entity. The Total
Investment & Insurance Solutions
"If
any other PSB board gives a consolidation proposal, to oversee that proposal an
alternative mechanism will be in place to give in principle approval for the
proposal of the banks for a scheme of amalgamation," Jaitley said. The Total Investment & Insurance Solutions
Explaining
that such an alternative mechanism "enables quick facilitation of
decisions", Jaitley said the constitution of the committee would be made
by the Prime Minister.
"The
decision regarding creating strong and competitive banks will be solely based
on commercial considerations," he said. The Total Investment & Insurance Solutions
"Our
experience of consolidation has been positive. It increases the entity's
commercial strength, the ability to absorb market shocks," he added. The Total Investment & Insurance Solutions
The
cabinet approval comes in the face of banking operations across the country
being hit on Tuesday as over 10 lakh bank employees in more than 1,30,000
branches pan-India struck work protesting against reforms in the banking
sector, including proposals of merger of state-run banks.The Total Investment & Insurance Solutions
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