Thursday, July 29, 2021
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Speed up merger of banks

The Union Cabinet has given nod for principle for merger of public-sector banks but to be started in phases that too only after a long time-consuming process of deliberations and consultations in committees to be formed for the purpose. Talks of merger of nationalized banks have been there for so many years, and as such necessary and sufficient reports must have been ready by now for an early implementation of already over-delayed decision. It is also clear from news appearing in media about five banks (apart from State Bank of India) namely Punjab National Bank, Canara Bank, Union Bank of India, Bank of India and Bank of Baroda being made anchor banks where all other banks are to be merged. Merger should be made at one-go rather than in phases that too earliest in a time-bound period say by start of new financial year. It will save enormous amount of public money being presently spent on heavy overheads of too many public-sector banks. Merger will further save by closing of nearing bank-branches with insignificant business.

Madhu Agrawal

(The views expressed by the author in the article are his/her own.)

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