Highlights | Nirmala Sitharaman Announces Banking Reforms, Mega PSU Bank Mergers

Finance Minister Nirmala Sitharaman on Friday announced major banking reforms and mega consolidation of public sector banks. After the merger, the number of PSBs has come down to 12 from 27.

Earlier today, Sitharaman held a meeting with chief executives of 10 state-run banks, which are seen as top contenders for the merger.

Here Are The Updates:

4:50pm: After the merger, there will now be 12 PSBs instead of 27 PSBs. 

4:49pm: "Risk Management Committee given mandate to fix accountability for compliance of Risk Appetite Framework", the Finance Minister said. Sitharaman further announced longer-term to Directors on Management Committee of Board (MCBs). 

4:48pm: Finance Minister announces a slew of governance reforms in Public Banking Sector.

4:47pm: The effectiveness of non-official directors will be enhanced, says Sitharaman.

4:44pm:  PSB Boards will be given the mandate to reduce or rationalise Board Committees, says Sitharaman. 

4:42pm: Board Committees of nationalised banks to appraise the performance of GM and above, says Sitharaman. Boards of PSBs will be empowered, says Sitharaman.

 4:41pm: "We have taken clear care so that the platform used by the banks are compatible. In bringing together the banks we have ensured that the financial technologies used by the banks are compatible and it can be done without disruption to the customers", FM Nirmala Sitharaman said.  

4:37pm: Bank of India and Central Bank of India will continue as public sector banks. says finance minister.

4:36pm: Indian Bank and Allahabad Bank to be merged, forming 7th largest PSB with a business of Rs 8.08 lakh crore.

4:35pm: Union Bank of India, Andhra Bank and Corporation Bank merger announced. It will be the 5th largest PSB with business of Rs 14.59 lakh crore.

4:33pm: Sitharaman announced merger of Canara Bank and Syndicate Bank. It will fourth-largest PSB.

4:30pm: Punjab National Bank, Oriental Bank of Commerce and United Bank to be consolidated, says Sitharaman. It will be the second-largest Public Sector Bank.

4:28pm: For the $5 trillion economy and robust banking sector, big banks with enhanced capacity to increase credit, says Sitharaman.

4:27pm: There has been a robust CASA growth and the profitability has increased, says Sitharaman. 

4:24pm: Consolidation of Bank of Baroda has resulted in good outcome, says Sitharaman.

4:23pm: Gross recovery of NPAs has come down, says Sitharaman.

4:22pm: There is no government interference in commercial decisions of banks, says Sitharaman.

4:21pm: Partial credit guarantee scheme for NBFCs executed; Rs 3,300 crore liquidity support given and Rs 30,000 cr in the pipeline, says Sitharaman.

4:20pm: We are going to get back the fugitives back from whereever they are to make sure they face the land of the law, says the finance minister.

4:19pm: Nirmala Sitharaman says that banks need good governance modules.

4:17pm: 72% GDP is credit availability, says Sitharaman.

4:15pm: Reform in the banking sector is top on agenda today, says Sitharaman

4:10pm:  We are making path clear for $5 trillion economy, says  Nirmala Sitharaman.

3:04pm: Stating that consumption needs to be given a push, Nirmala Sitharaman on Thursday said the Centre will announce two more big steps in the coming days to give momentum to industry. The government has decided to increase spending and has announced a slew of measures to arrest the sluggishness in the automobile market, she said.