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No proposal of PSB merger under consideration: Govt

To facilitate consolidation in the public sector banking space, the Cabinet in August gave in-principle approval for PSBs to amalgamate through an Alternative Mechanism

Press Trust of India  |  New Delhi 

No proposal of PSB merger under consideration: Govt

Union on Tuesday said no proposal regarding of (PSBs) is under consideration of the

However, the has put in place an approval framework for proposals to amalgamate nationalised banks, the of State for said in a written reply to Rajya Sabha.

The Companies (and Transfer of Undertakings) Acts of 1970 and 1980 provide that the central government, in consultation with RBI, may make a scheme for amalgamation of any nationalised with any other nationalised or any other institution, he said.

To facilitate consolidation in the public sector space, the Cabinet in August gave in-principle approval for PSBs to amalgamate through an Alternative Mechanism (AM).

Subsequently in November, a panel under the chairmanship of was set up to examine proposals from for in-principle approval to formulate schemes of amalgamation.

A report on the proposals cleared by it will be sent to the Cabinet every three months.

Last year, five associates and Bharatiya Mahila merged with (SBI), catapulting the to among the top 50 in the world.

With the merger, SBI joined the league of top 50 banks globally in terms of assets. The total customer base of the bank will reach 37 crore with a branch network of around 24,000 and nearly 59,000 ATMs across the country.

The merged entity began with deposit base of more than Rs 26 lakh crore and advances level of Rs 18.50 lakh crore.

First Published: Tue, January 02 2018. 21:58 IST
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