State-Run Bank Mergers To Come Into Effect From April 1, Says Sitharaman
Finance Minister Nirmala Sitharaman on Wednesday said the exercise of consolidation of 10 public sector banks into four is on course and the merger will come into effect from April 1, 2020.
The Union Cabinet, she said, has given a go-ahead for the merger proposal and the government has been in regular touch with these banks. There will be no regulatory issues, she said.
"The banks' merger is on course and decisions have already been taken by the respective bank boards," she told reporters. The mergers are aimed at creating global sized banks in India.
In the biggest consolidation exercise in the banking space, the government in August 2019 had announced four major mergers of public sector banks, bringing down their total number to 12 from 27 in 2017, a move aimed at making state-owned lenders global sized banks.
Last year, Dena Bank and Vijaya Bank were merged with Bank of Baroda. Prior to this, the government had merged five associate banks of SBI and Bharatiya Mahila Bank with the State Bank of India.