Number of PSBs declines to 12 from 27 after consolidation

Canara Bank Syndicate Bank to merge to become 4th largest public sector bank

The announcement by Finance Minister Nirmala Sithraman, in second of her promised three-dose economic booster, came on a day GDP growth hit a six-year low. The move, claimed the protesting body of unions, will lead to job losses and make the workforce vulnerable. Similarly, Dena Bank, Vijaya Bank merged with Bank of Baroda which came into effect from 1 April 2019.

While he did not specify the date from when the scheme of amalgamation would become effective, Rajiv Kumar said the boards of the banks would take a decision on the scheme.

The shares of PSU banks closed subdued in trade today despite reports of the merger.

"However, given the sizeable capital infusion being announced for these 10 banks, the merger is unlikely to credit negative for merging banks", Gupta said.

In May, shortly before the Lok Sabha election results were out, Reuters had reported Punjab National Bank could merge with Oriental Bank Of Commerce, Andhra Bank and Allahabad Bank.

Additionally, the total business of the merged entity of Canara Bank and Syndicate Bank will be Rs 15.20 lakh crore.

More news: Redmi Note 8 Unboxing/ Hands-on Pictures in all its glory

The third merger will be between Andhra bank, Union Bank of India (UBI) and Corporate Bank to create the fifth largest PSB with a combined business of Rs 14.59 lakh crore. The efforts taken in the last five years has significantly cut down on the non-performing loans, while the recovery of loans has also notably improved.

Terming this move as 'Building NextGen Banks, ' Nirmala Sitharaman told a press conference that from this consolidation will emerge big banks with enhanced capacity, strong national presence and global reach. Several of these banks have, over the past six years, been hurt by rising bad loans and dwindling capital, which has crippled their ability to lend faster.

The finance minister also unveiled governance reforms in public sector banks, saying their boards will be given autonomy and enabled to do succession planning.

The Narendra Modi government has reportedly prepared a major plan for merging multiple sets of PSBs and may announce it anytime soon, said a report in Business Standard quoting sources. The Bank of Baroda, whose merger with the Dena and the Vijaya Bank, was announced in the last fiscal, would get Rs 7,000 crore and the Canara Bank would be infused with Rs 6,500 crore. Bank of Maharashtra (BoM) in the west will continue with Rs. 2.34 lakh crore of business, along with Punjab & Sind Bank, with a business of Rs. 1.71 lakh crore.

"Smaller state-owned banks are generally inefficient and so the idea to merge them to make a large bank would be a good one in the long run". It has allowed them to hire external chief risk officers and to provide them market-linked compensation.

Related News:

Most liked

John Travolta laughs off Taylor Swift VMAs mix-up
Jolie, who also appears in the "You Need To Calm Down" music video , started to have fun with everyone who thought she was Swift. Swift's confidante Todrick Hall said on the Jerry O' Show Wednesday that the pop starlet was amused by the ordeal.

Death toll from Congo's EBOLA outbreak exceeds 2 000
It can also reportedly spread through contact with body fluids, infected people or of those who have succumbed to the virus. A Ugandan man and his Congolese wife lost two sons after their return from a trip to DR Congo to see relatives.

Global shares rally, bond yields rise as China fuels trade deal hopes
Italian stocks rose almost 2% and the country's government bonds also rallied, with yields on 10-year bonds hitting a record low. Negotiators meet next month in Washington after the latest round of talks in July in Shanghai produced no sign of progress.

USA officials attempting to block subsea cable from China to US
Ships have already installed 6,800 miles of the cable system, which will be ready by December or January, according to WSJ. It promises "faster connections for its investors on both sides of the Pacific", the Journal reports .

Twitter CEO Jack Dorsey’s Account Hacked
The Twitter CEO is still dating model Raven Lyn Corneil but just sold the LA mansion he bought her in 2018, according to Page Six .

MSNBC's O'Donnell retracts Trump-Russia story
On Twitter , Eric Trump known as the report "a reckless attempt to slander our family and smear a great company". Apologies are not enough when the true intent was exclusively to damage and cause harm.

Ashes: Archer hits back at Smith as mind games continue
And Paine was confident that his team had gotten over it completely. "He actually didn't get me out". Perhaps, Ricky Ponting was talking about this special power of Starc.

India’s GDP growth slows to 5%, more stimulus expected
Next in line were the usual suspects of agriculture and mining sectors, which grew at a dismal 2 and 2.7 per cent respectively. The National Statistical Office on Friday will release India's economic growth figures for the April-June quarter of 2019-20.

Microsoft Tests a New Windows 10 Tablet Experience
Microsoft's blog post notes that the cloud download option doesn't now work when "specific optional features aer installed". To see the full release notes with all the improvements for this insider build, you can read Microsoft's blog post.

Mega bank merger? Sitharaman's meet with PSU chiefs sparks speculation
Prior to this, the government had merged five associate banks of SBI and Bharatiya Mahila Bank with State Bank of India. She also said that chief risk offers will be recruited at market-linked compensation to attract best available talent.

Google Hire to be shut down
Google will also provide a free data export until the end of the contract term or September 1, 2020, The export format is JSON. The tech giant had shut several products earlier, including Google Hangouts, Google Plus, Inbox by Gmail, and Google Allo.

Realme XT is a 64MP camera smartphone, a first in the world
Taking down information from the floating rumours, the device is expected to boast of a Silver Wing White colour variant as well. The phone will be available in three storage configurations - 4GB RAM + 64GB ROM, 6GB RAM+ 64GB ROM, and 8GB RAM+128GB ROM.

Saaho full movie leaked online by Tamilrockers
The reason for that is because morning shows for Saaho , especially for the Hindi version were cancelled at many places. Nearly 70 per cent of the shows across Hindi belt thanks to the opening of advance booking for the film.

Johnson seeks to woo Trump, talk tough to European Union at G7
Johnson has also started to talk about the money side of Brexit , and the reported 39 billion pounds Britain would have to pay as a so-called divorce settlement when it leaves the bloc.

Dhoni absent from India's T20 squad to face Proteas
It couldn't be ascertained whether the selectors spoke to Dhoni about his availability for the home series against South Africa. India's World Cup winning captain and legendary glovesman has yet missed out on another series post the world cup.