Process of Merger of PSU Banks to Start Soon

Banking News

Business Mantra News

  • The Issue of merger of Public Sector Banks has been very much on the cards since the merger of 6 Banks with SBI
  • In April this year a biggest PSU Bank merger was observed when SBI took-over its subsidiaries and The Bhartiya Mahila Bank.
  • Now its official that PSU Banks shall be merged.
  • Central Government gave its nod to start process of merger by issuing notification after the approval of the Union Cabinet headed by Prime Minister.
  • There will be Banks in less numbers but stronger Banks are anticipated.
  • Stronger Banks shall have the capacity to raise their own resources and absorb economic & financial shocks.
  • A Cabinet Committee is being constituted to consider this issue and notify the process of merger with the help of Reserve Bank of India
  • Now the Bank shall take this decision to this effect through their Boards
  • Valuation of shares of each Bank, their swap ratio, keeping the safeguard of small investors shall also be the criteria for the Bank mergers.
  • As per the official version from government’s side, it is reiterated that safe guarding the job loss of employees shall also be kept in mind while probable merger process shall be conducted.

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