The Minister of State for Finance stated that there are no plans to consolidate the banks at this time. The privatization of two public sector banks has already been announced in the current fiscal year’s budget. View detailed news.
New Delhi: Minister of State for Finance Nirmala Sitharaman has stated that the government has no plans to merge public sector banks at this time. There has also been no proposal made in this regard. In Budget 2021, it was already announced that two banks would be privatised.
In the first budget, the announcement was made.
Finance Minister Nirmala Sitharaman announced the privatisation of two banks and a government insurance company when she presented the budget on February 1, 2021. For the current fiscal year, 2021-22, the government has set a target of Rs 1.75 lakh crore for disinvestment and privatisation. Let us inform you that the NITI Aayog has been tasked for privatisation selection. The Indian Overseas Bank and the Central Bank of India have been chosen for privatisation, according to current knowledge. However, it has yet to be officially revealed.
When did banks start merging?
The Modi government implemented a two-phase merger procedure to enhance the condition of public sector banks. In the year 2019, ten public sector banks combined. Six small banks were consolidated into four large banks at this time. At the same time, Punjab National Bank merged with Oriental Bank of Commerce and United Bank of India. Then Indian Bank and Allahabad Bank merged. Canara Bank merged with Syndicate Bank. Union Bank of India merged Andhra Bank and Corporation Bank.
In the first phase of the SBI merger,
Five affiliate banks were merged into the country’s largest public-sector bank, State Bank of India, in the first phase. Apart from that, Bank of Baroda merged Vijaya Bank and Dena Bank. In the country today, there are 12 public sector banks.
Bank earnings during the last five years
The merger’s impact is beginning to be felt. The banks’ profits have risen as a result of this. Despite the Corona outbreak, public sector banks made a profit for the first time in five years in the fiscal year 2020-21. In the previous financial year, 12 banks earned a total of Rs 31817 crore. The problem of poor loans is steadily diminishing, and banks are improving as a result. The total loss of public sector banks in the financial year 2019-20 was 26015 crores. Only the Punjab and Sind Bank and the Central Bank lost money