You are here: Home » Economy & Policy » News
Business Standard

Ministers' panel to oversee consolidation of PSU banks: Arun Jaitley

The Cabinet gave in-principle nod to the constitution of Alternative Mechanism

Topics
Psbs Merger

Agencies  |  New Delhi 

Ministers' panel to oversee PSU bank merger: Arun Jaitley
Union Finance Minister Arun Jaitley addressing a press conference after a cabinet meeting in New Delhi on Wednesday. Photo: PTI

The Cabinet has approved a mechanism to oversee consolidation in the state-run banking sector, Finance Minister Arun Jaitley said on Wednesday.

Jaitley said a ministerial panel will be set up to supervise merger proposals from banks' boards, adding that the objective of the planned consolidation was to create strong banks.

The Cabinet gave in-principle nod to the constitution of the mechanism which will clear proposals of banks for mergers and amalgamation, he said.

The government aims to create strong and competitive banks in public sector space to meet the credit needs of the growing economy, absorb shocks and have the capacity to raise resources without depending on the state exchequer, he said.

The decision regarding creating strong and competitive banks would be solely based on commercial considerations, he added.

After the in-principle approval, Jaitley said, the banks will take steps in accordance with law and Sebi's (Securities and Exchange Board of India) requirements.

The final scheme will be notified by the central government in consultation with the Reserve Bank.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, August 23 2017. 16:10 IST
RECOMMENDED FOR YOU
.