FinMin officials meet PSU banks on consolidation

Last Updated: Thursday, November 19, 2009 - 18:33

New Delhi: The Finance Ministry has held a
discussion with leading PSU banks to explore the possibility
of creating a few large banks through mergers and
acquisitions.

Heads of five PSU major banks--Punjab National Bank, Bank
of Baroda, Canara Bank, Union Bank of India and Oriental Bank
of India--attended the meeting called by Additional Secretary
GC Chaturvedi last night here.

"It was a pure consultation meeting where views were put
together on what are the challenges or issues in bank
consolidation. One view was that on the lines of the
Narasimham Committee report, it is better to have four large
banks in the country that have international presence," said
Union Bank of India chairman and managing director MV Nair.

It is also learnt that banks supported the idea of
greater size and scale to meet the growing fund requirements
of corporate India for overseas acquisitions.

"If it happens (consolidation), it will be for the
good of the industry. Consolidation will lead to banks with
bigger size and scale in the country. However, it should be
looked at on a case-to-case basis," said Bank of Baroda
chairman and managing director MD Mallya.

Canara Bank chairman and managing director
AC Mahajan said, "we have given our views. They are interested
to know what are the issues likely to arise. We have shared
with them what are the issues."

Bureau Report



First Published: Thursday, November 19, 2009 - 18:33

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