Govt Will Merge 10 PSU Banks By April 1st, No Uncertainty Exists; Loans Will Be Restructured
Since last 24 hours, there have been some reports that the mega-merger of 10 PSU banks will be delayed by atleast 6 months.
As per a report by Zee Business, an unnamed Finance Ministry official had said that due to regulatory delays, and need for extra fund to manage the merger, there can be delay.
However, this speculation has been put to rest, and the merger will indeed happen by April 1st.
This has been confirmed by FM Nirmala Sitharaman.
Finance Minister: No Delay In Merger
India’s Finance Minister Nirmala Sitharaman has declared that there exists absolutely no uncertainty in the merger of 10 PSU banks.
And the merger will be accomplished by April 1st, which was the deadline announced earler.
Although she admitted that discussions are on, regarding the conveniences of the merger, and she was confident that these will be sorted, by April 1st.
She said, “There are no uncertainties about the bank merger. Discussions are going on about the convenience with which they are doing it. I must thank all the banks because through their boards they have taken that call,”
This makes it absolutely clear, that there exists no uncertainty.
Loans Will Be Restructured
While speaking at the launch of EASE 3.0 reform agenda, the Finance Minister also clarified that the existing loans which have been taken by SMEs and entrepreneurs fro the merged banks will be restructured.
This will help to reduce confusion, and simplify repayment terms.
Hence, a ton of core-banking work needs to be sorted out before April 1st.
She said, “I have asked them to reach out to 400 districts, I have asked them to reach out to MSMEs and restructure their loans. So there is a lot of core banking work which they are undertaking,”
However, she didnt mention about any additional funds required, for executing the mergers.
As we shared earlier, this mega-merger will witness 10 PSU banks reduced to just 4. As per reports, hundreds of bank branches will be closed down, or merged as part of this process.
While Punjab National Bank will merge with United Bank, Oriental Bank of Commerce, thereby creating India’s 2nd biggest bank; Syndicate Bank will merge with Canada Bank and Allahabad will merge with Indian Bank.
At the same time, Andhra Bank and Corporation Bank will merge with Union Bank of India.
We will keep you updated, as more details come in.