Finance Minister Arun Jaitley had said that the government is working fast on the merger of government banks

The central government is contemplating to reduce the number of public sector banks to 12. The government is working on an agenda connected to it. According to this agenda, the government is planning to create 3-4 global level banks with the reduction in the number of public sector banks.

An official said that 21 public sector banks will be reconciled to 10 to 12. He said that 3 to 4 such banks will be made according to the three-tier structure, which will be as big as the State Bank of India. The official also informed that Regional Banks like Punjab and Sind Bank and Andhra Bank will continue to work as an independent bank. Apart from this, some mid-landers will also continue their operations.

Last month, Finance Minister Arun Jaitley had said that the government is working fast on the merger of government banks. However, he refused to give much information about this. SB I. The excited finance ministry is considering clearing such a second proposition. However, it is expected to happen only when the bad loan situation comes under control. According to the Reserve Bank of India (RBI), there will be some big banks in the system, some small and some local banks. He had said that there is a need of variety in the system.

An official said on condition of anonymity that there is a possibility that Punjab National Bank (PNB), Bank of Baroda, Canara Bank and Bank of India can explore potential players for the acquisition. He said that for this, these banks will also see regional equilibrium, geographical reach and financial pressure and easy access to human resources. He also said that the weak bank should not be merged with the strong banks.

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