Nirmala Sitharaman addresses press conference.
Nirmala Sitharaman has started addressing the press conference. GDP numbers, new measures to address slowdown in various sectors expected.
Reforms for banking sector has already begun: Nirmala Sitharaman
FM says eight public sector banks have already linked their loan products with the repo rate. Rs 3,300 crore has been sanctioned and partial credit guarantee scheme for NBFCs and HFCs has begun
FM – Specialised agencies to monitor every loan over Rs 250 crore
Finance Minister Nirmala Sitharaman: For every loan over Rs 250 crore specialised agencies have been set up to monitor them.
PNB, Oriental, and United banks to be merged: Finance Minister
PNB, Oriental, and United banks to be merged: Finance Minister. This will be the second largest public sector bank with a business of Rs 17.95 lakh crore.
Nirmala Sitharaman announces second merger of the day. Canara Bank and Syndicate Bank will also be merged.
The merged entity will have third largest branch network of 10,342 branches and a business of Rs 15.2 lakh crore.
FM announces third merger – Union Bank, Andhra Bank and Corporation Bank to become a single entity.
This entity will be the one with the fourth largest branch network at 9,609 branches.
FM announces merger of Indian Bank with Allahabad Bank, the fourth one for the day.
This will become the 7th largest PSB with a business of Rs 8.08 lakh crore.
The mergers announced reduces the total number of PSBs from 27 in 2017 to 12.
Each of these mergers will see one anchor bank, while the others will be amalgamated into them.
Merger of PNB, Oriental, and United banks results in formation of second-largest PSB in India.
The newly-formed behemoth will have a business of Rs 17.95 lakh crore.
Bank of India and Central Bank will continue to have national presence.
Finance Minister: These two banks will continue with their national presence with a combined business size of Rs 13.98 Lakh Crores.
Time for consolidation is right: Department Of Financial Services Secretary Rajiv Kumar
He said this is the right time if we want to achieve the target of a $5 trillion economy. He further said that alternate mechanism has given its approval, and the board of the banks will consider the proposals. Each bank will take the proposal to their respective boards and permission will then be taken from RBI.
No job loss due to mergers: Nirmala Sitharaman
The FM has emphasized that no bank employee will lose their job as a result of the mega bank mergers.