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| Govt considering introduction of Banking Regulation Bill |
| Press Trust of India / New Delhi Jul 17, 2009, 17:17 IST |
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The government today said it is considering a proposal to again introduce Banking Regulation Amendment Bill and State Bank of India Amendment Bill in Parliament.
The Banking Regulation (Amendment) Bill, 2005, and the State Bank of India (Amendment) Bill, 2006, which were introduced by the government in the 14th Lok Sabha have lapsed, Minister of State for Finance Namo Narain Meena told Lok Sabha in a written reply.
"The proposal to introduce these Bills again in Parliament is under consideration of the government," he added.
In response to another question, Meena said, consolidation in the banking sector entails better management of risks, economies of scale in terms of footprints, manpower and other resources.
Indian banks of a larger size would enable them to face competition arising from internationalisation of the economy, he said.
Hence, it is seen as a timely response to augment efficiency, which would lead to income generation and add to Gross Domestic Product of the country, he added.
The minister said the government is of the view that the initiatives for consolidation should emanate from the management of the banks themselves with the government playing a supportive role as the common shareholder.
While supporting merger proposals, Meena said the government keeps in view the interests of the stakeholders and employees of merging banks.
The minister in another reply added that minimum deposit rates since January have declined by 1.5 per cent to 6.5 per cent as of June 2009.
During January, the minimum deposit rate of major banks was 8 per cent, which came down to 6.5 per cent by June, he said.
During the same period, maximum rate declined from 9 per cent to 8 per cent, he added.
During 2008-09, 3,241 branches were opened by both private and public sector banks taken together, Meena said in a separate response.
Of the total, 2,351 branches were opened by the public sector banks, while 890 branches were opened by private sector banks, he said.
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