In the background of the Rs 2.11 trillion recapitalisation and the merger of state banks under the SBI, the government is proceeding with the next policy step on PSBs – consolidation.
Finance Minister Arun Jaitely is going to head a Ministerial committee to oversee the merger of the 21 Public Sector Banks.
At present, the category of PSBs comprises of 21 banks. SBI is the leader with the nationalised banks and IDBI completing the rest.
According to the PTI report, besides Jaitely, members of the Committee include Railway and coal Minister Piyush Goyal, and Defence Minister Nirmala Sitharaman.
In August this year, the Union Cabinet decided to go for alternative mechanism for facilitating bank consolidation.
Efforts for consolidation is strong to rescue several PSBs who are having sizable level of NPAs. Experts have pointed out that big and strong entities will be good for public sector.
The PJ Nayak committee that made notable recommendations on PSBs, suggested for the merger of PSBs or launching privatisation.
Tags : psb consolidation