Big Bang Bank Mergers : View Nirmala Sitharaman Press Conference in Slide format

On 30th Aug 2019, Finance Minister Mrs Nirmala Sitharaman announced that the government of India has decided to merge ten public sector banks into four big lenders. 

The mergers would be as follows

Punjab National Bank + Oriental Bank of India + United Bank of India

Canara Bank + Syndicate Bank 

Union Bank + Andhra Bank + Corporation Bank 

Indian Bank + Allahabad Bank 

India will now have 12 public sector banks with large balance sheet and ability to lend more.

FM started presentation stating the metamorphosis banking has seen over the years and stern steps taken for overhaul of banking system such as identifying and deletion of shell companies, introduction of Insolvency and Bankruptcy Code,  linking of SWIFT to CBS, bringing transparency and method to selection of top brass of PSUs

All such steps have clearly been reflected into results such as highest even Bad loan recovery at 12 Lac Crores, Gross NPA lowest in 5 quarters and enhance profitability.

FM then stressed the logic behind the consolidation. This step was a necessary step to strengthen banks towards goal of $5 trillion economy in next 5 years. The details are mention in slide below

 

next slides mention proposed merger of banks with details such as business of merged entity, branch network, CASA stats and key numbers of each merged entity

The merged entities will have clear focus. some will aim to be global banks with multi country presence while other will have strengthen their national presence. Remaining branch will focus on local economy. 

Finance Minister also enlisted big reforms undertaken by Narendra Modi Govt. These include, inducting Chief Risk Officer, Roles and Responsibilities of board and directors including independent directors.

Slide below gives summery  of FM's presentation. Rs 55,250 Crores will be given as upfront capital for credit growth which will act as booster for economy.  

The slides are taken from presentation of FM Nirmala Sitharaman

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