India needs fewer and mega banks: Jaitley


Team Udayavani, Feb 18, 2019, 11:48 AM IST

New Delhi: Finance Minister Arun Jaitley on Monday said India needs fewer and mega banks to achieve economies of scale in the sector.

After the amalgamation of five associates and Bharatiya Mahila Bank with SBI in 2017, the government earlier this year approved the merger of Dena Bank and Vijaya Bank with Bank of Baroda.

“With the experience in the past really has been of SBI merger, now it is second one which is taking place,” Jaitley said after the customary post-budget address to the RBI board.

“India needs fewer and mega banks which are strong because in every sense, from borrowing rates to optimum utilisation, the economies of scale as far as banking sector is concerned are of great help,” he said.

The Union Cabinet last month approved the merger of the three banks to create the country’s third-largest lender after SBI and ICICI Bank.

The amalgamation, the first-ever three-way consolidation of banks in India, would be effective from April 1, 2019.

After the merger, the number of public sector banks will come down to 18.

In September 2018, the Alternative Mechanism, headed by Jaitley, gave in-principle approval for the merger of the three banks to create a global-sized lender.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Women centric schemes game-changer for Maharashtra, Jharkhand?

AR Rahman sends notice to ‘slanderers’ over speculations surrounding separation with Saira Banu

No anti-government sentiment in Kerala, claims CM Vijayan

Jaiswal’s Perth Simulation: 200 overs in 2 days, inclined concrete slab, lighter synthetic balls

PCB says no meeting with ICC, BCCI officials on November 26 to resolve CT imbroglio

Australia coach McDonald surprised about behaviour of wicket on Day two

Sharad Pawar: Assembly poll rout raises question of existence for patriarch’s political legacy

Related Articles More

Never entered into pact to operate airport in Kenya: Adani

None of Adani portfolio cos subject to any legal case: Group CFO on promoter indictment in US

Binny Bansal steps down from board of PhonePe

MSEZ partners with Italy’s MIR Group for Rs 1,500 cr green facility

Sony India bags ACC media rights for eight years

MUST WATCH

Prakash Belawadi

Naxal Leader Vikram Gowda

Christmas Cake Fruit Mixing

DK Shivakumar

Rose Cultivation


Latest Additions

Satwik, Chirag doubles pair bows out of China Masters semifinals

Puttur: Two arrested for misconduct under influence of drugs

Kaup: Massive campaign and awareness rally Nov 26 for Constitution protection

Never entered into pact to operate airport in Kenya: Adani

Women centric schemes game-changer for Maharashtra, Jharkhand?

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.