India needs fewer and mega banks: Jaitley
Team Udayavani, Feb 18, 2019, 11:48 AM IST
New Delhi: Finance Minister Arun Jaitley on Monday said India needs fewer and mega banks to achieve economies of scale in the sector.
After the amalgamation of five associates and Bharatiya Mahila Bank with SBI in 2017, the government earlier this year approved the merger of Dena Bank and Vijaya Bank with Bank of Baroda.
“With the experience in the past really has been of SBI merger, now it is second one which is taking place,” Jaitley said after the customary post-budget address to the RBI board.
“India needs fewer and mega banks which are strong because in every sense, from borrowing rates to optimum utilisation, the economies of scale as far as banking sector is concerned are of great help,” he said.
The Union Cabinet last month approved the merger of the three banks to create the country’s third-largest lender after SBI and ICICI Bank.
The amalgamation, the first-ever three-way consolidation of banks in India, would be effective from April 1, 2019.
After the merger, the number of public sector banks will come down to 18.
In September 2018, the Alternative Mechanism, headed by Jaitley, gave in-principle approval for the merger of the three banks to create a global-sized lender.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
IndiGo, Air India plan to purchase up to 170 wide-body planes in little over a year
Kotak Mahindra Bank shares tank 13%; mcap erodes by Rs 37,721 crore post RBI action
Four-day market rally makes investors richer by Rs 8.48 lakh crore
Kotak Bank barred from onboarding customers online, issuing fresh credit cards
Reverse migration has begun, says FM Nirmala Sitharaman
MUST WATCH
Latest Additions
Siddaramaiah meets Neha Hiremath’s family, offers condolences
Lok Sabha Polls 2024: Bengaluru bigwigs cast votes early
LS Elections 2024: Brisk voting in Udupi & Dakshina Kannada; EVM snag delays polling in some booths
IPL 2024: I’ll sleep better, says Faf du Plessis
IndiGo, Air India plan to purchase up to 170 wide-body planes in little over a year