Reacting to the announcement made by the government on consolidation of public sector banks, Mr Sandip Somany, President, FICCI said, "This is a major announcement and FICCI strongly welcomes the decision of the government to further consolidate and strengthen the banking sector of the country. For an economy that is aiming to reach the US$ 5 trillion mark, we need a very strong and stable banking sector that can efficiently meet the credit requirements. Today's decision is a reflection of the government's commitment to provide the country the financial base on which we can grow and move towards the US$ 5 trillion mark."
"There are many benefits associated with bank consolidation. Greater lending capacity, deployment of better technology, larger branch network, enhanced national and global presence - all these and more benefits will now be seen in the country's public sector banks and they will be able to play an even more active role in driving India's economic growth. FICCI has been advocating the need for furthering the bank consolidation agenda as India needs fewer large banks that can benefit from economies of scale," added Mr Somany.
"Besides consolidation, the government has also announced wide-ranging measures to improve the governance framework for banks. These measures would considerably strengthen the operational framework for Public Sector Banks and enable them to meet the requirements of a large and growing economy," said Mr Somany.
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