Bank mergers aimed at economic growth | Highlights from Nirmala Sitharaman's briefing
Finance Minister Nirmala Sitharaman Friday addressed a press conference, wherein she announced some major mergers of the public sector banks. Sitharaman also said loans above Rs 250 crores are being strictly monitored by specialised agencies.
Finance Minister Nirmala Sitharaman Friday addressed a press conference Friday, wherein she announced the merger of public sector banks. Earlier on Thursday, Nirmala Sitharaman had said the Centre will announce two more big steps in the coming days to give momentum to industry.
In the previous week, the finance minister had addressed a similar conference, wherein a raft of measures to boost demand and investment and provide relief to the ailing banking and auto sectors were announced.
Here are the Highlights from Sitharaman's press briefing
05:01 pm: List of banks to be merged, as announced by Finance Minister Nirmala Sitharaman
1. Oriental Bank of Commerce will be merged with United Bank with Punjab National Bank
2. Syndicate Bank will be merged with Canara Bank
3. Corporation Bank will be merged with Union Bank of India
4. Indian Bank will be merged with Allahabad Bank
04:59 pm: I am not going to comment on remarks from Congress because if bank frauds became an assumption for the Indian citizen it is because of the Congress party. Many of these fugitives we are trying to get back were encouraged during their time, says Sitharaman
04:58 pm: Non-official directors to perform role analogous to independent directors, says Finance Minister
04:57 pm: Bank boards given the flexibility to fix sitting fee of independent directors, says Sitharaman
04:56 pm: Public sector banks enabled to do succession planning, says Sitharaman as she unveils governance reforms in PSBs
04:55 pm: Finance Minister Nirmala Sitharaman announces non-official directors to perform role analogous to independent directors
04:54 pm: Bank boards given the flexibility to fix sitting fee of independent directors, says Sitharaman
04:52 pm: After today's announcement (merger of banks) post-consolidation, India will now have 12 Public Sector Banks from 27 Public Sector Banks, says Finance Minister
04:48 pm: We shall continue with 2 banks which will have a national presence - Bank of India with Rs 9.3 Lakh Crores of business size and Central Bank with Rs 4.68 Lakh Crores of business size, says Nirmala Sitharaman
04:42 pm: Big banks enhanced capacity to increase credit, FM Nirmala Sitharaman says in prelude to the announcement of new bank mergers
04:39 pm: Indian Bank merged with Allahabad Bank will be the 7th largest Public Sector Bank with a business of Rs 8.08 lakh crores, says Finance Minister
04:37 pm: Union Bank of India, with Andhra Bank and Corporation Bank shall become the 5th largest public sector bank now, says Sitharaman
04:36 pm: Canara Bank with (merge) Syndicate Bank will be the 4th largest Public Sector Bank with business of Rs 15.20 lakh crores, says Nirmala Sitharaman
04:34 pm: Punjab National Bank, Oriental Bank of Commerce and United Bank will be brought together and they shall form the 2nd largest public sector bank with a business of Rs 17.95 Lakh Crore, says Sitharaman
04:32 pm: Gains are visible from reforms in PSBs as 14 of them reported a profit in the first quarter of 2019-20, says Finance Minister Sitharaman
04:30 pm: Loans above Rs 250 crores are being strictly monitored by specialised agencies, says Sitharaman
04:27 pm: The market capitalisation is expected to touch 50,000 crores, says Finance Minister Sitharaman
04:25 pm: There is no government interference in commercial decisions of banks, says Nirmala Sitharaman
04:24 pm: Partial credit guarantee scheme for NBFCs executed; Rs 3,300 cr liquidity support given and Rs 30,000 cr in the pipeline, says Sitharaman
04:23 pm: Talking of provisional coverage ration, Sitharaman says the highest in the last 7 years has happened
04:22 pm: Record levels have been reached in loan recovery and Gross Non Performing Assets have come down from 8.65 lakh crores to 7.90 crores, says Finance Minister Sitharaman
04:21 pm: The measures to be announced today will aim to increase credit in the market. The government is also focussed on giving banks a good governance model, says Finance Minister Nirmala Sitharaman
04:20 pm: Foreign branches are rationalised, says Sitharaman
04:18 pm: 3.38 shell companies have been shut down and the 4 NBFCs have found solutions, says Nirmala Sitharaman
04:14 pm: We need to lay a very strong foundation of the banking sector. In the last several years, we have implemented major banking reforms, says Sitharaman
04:12 pm: The first few steps we are talking about are associated with the banking sector, says Sitharaman
Among the measures Sitharaman announced last week were a withdrawal of the 'super-rich surcharge' imposed on foreign investors, an infusion of Rs 70,000 in public sector banks, and steps meant to increase demand in the auto sector.
The financial year 2018-19 ended with an overall GDP growth rate of 6.8 per cent, which was four percentage points lower compared to the year before. The growth rate for the fourth quarter of FY 2018-19 (January to March) stood at 5.8 per cent.
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Watch full press conference of Finance Minister Nirmala Sitharaman