Govt not forcing bank consolidation, says Pranab

Finance Minister Pranab Mukherjee today said neither the government nor the Reserve Bank of India (RBI) has given any directive to state-owned banks for merger or consolidation.

“We are not giving any directives. We have not taken any initiative on this. If their (banks) boards of management decide to merge or consolidate, and if they meet the criteria, the government and the RBI will give their approval,” Mukherjee said in his reply to a calling-attention notice on government's move on consolidation in the banking sector. “We do not force anybody to merge. It's a continuing process. It has taken place in earlier regimes also,” he said.

Mukherjee assured the government would keep in view the interests of all stakeholders, including the employees of the merging banks while examining any consolidation proposal.

On Friday, Minister of State for Finance Namo Narain Meena told Lok Sabha that government has so far has not received any proposal for merger or consolidation from any nationalised bank.