Nirmala Sitharaman addressed a press conference on banks
Finance Minister Nirmala Sitharaman has announced the mergers of several banks into "consolidated banks" as she addressed a press conference amid an economic slowdown. Oriental Bank of Commerce and United Bank to be merged with Punjab National Bank, she announced. Syndicate Bank to be merged with Canara Bank. Union Bank of India to be merged with Andhra Bank and Cooperation Bank. Indian Bank is merged with Allahabad Bank.
Here are the highlights of Nirmala Sitharaman's address:
"4-5 merger principles. First is that there should not be disruption for the customers. This should benefit from scale and synergy in terms of CASA and their reach. The number of employees, cultural affinity, have all been taken into account to ensure its not merging for the sake of merging. Compatible, viable entities have been merged": Government
We have taken adequate care to consult, take everyone on board: Nirmala Sitharaman
We expect to have quick realisation of gains: Nirmala Sitharaman
12 Public Sector Banks Remain: Nirmala Sitharaman
After the mega PSU bank consolidation drive, there will be 12 public sector banks in the system, as against 27 in 2017: Nirmala Sitharaman
Chief Risk Officer To Be Appointed: Nirmala Sitharaman
Public sector banks' boards empowered to recruit chief risk officer at market-linked compensation to attract best available talent, says Finance Minister Nirmala Sitharaman
Consolidated public sector banks will have a strong global presence. 82% of all the public sector bank business will be with them: Nirmala Sitharaman
Their business will become two times. There would be cost saving and income opportunities for joint ventures: Nirmala Sitharaman
Unlocking Potential Through Consolidation: Nirmala Sitharaman
We need banks to sustain growth potential. Banks with strong national presence, global reach is what we want. Scaling up will allow them resources. Thus lending costs will come down. It will help in building $5 trillion economy: Nirmala Sitharaman
Public sector banks enabled to do succession planning: Nirmala Sitharaman
Consolidated Canara, Syndicate Bank to be 4th largest public sector bank with ₹15.2 Lakh Crore: Nirmala Sitharaman
Consolidated PNB, OBC, United Bank Will Be Second Largest Public Sector Bank
Consolidated PNB, OBC and United Bank to be 2nd largest public sector bank with ₹18 lakh crore: Nirmala Sitharaman
Partial credit guarantee scheme for NBFCs executed; Rs 3,300 cr liquidity support given and Rs 30,000 cr in pipeline: Nirmala Sitharaman
To prevent Nirav Modi like frauds, SWIFT messages have been linked to core banking system: Nirmala Sitharaman
Bad Loans Have Come Down: Nirmala Sitharaman
Gross bad loans of public sector banks have come down to Rs 7.9 lakh crore from Rs 8.65 lakh crore at December-end 2018: Finance Minister Nirmala Sitharaman
Government Merges several banks Finance Minister Nirmala Sitharaman has announced merger of several banks.