Is Consolidation of PSBs a reality in the near future? As per press statement released by the Government, the Finance Ministry is organizing two days meeting of PSBs in Pune on Jan 2 -3, 2015. The meeting will be attended by Prime Minister Narendra Modi, Finance Minister Arun Jaitley, Reserve Bank of India (RBI) Governor Raghuram Rajan, Chairmen and Managing Directors of all the public sector banks along with officials of finance ministry. Apart from the matter of consolidation of banks, the meeting, named Gyan Sangam ((knowledge confluence), will also discuss restructuring of public sector banks to increase efficiency and capitalisation needs. According to statement, the outline of the action plan will be presented to the Prime Minister, who will attend the meeting on January 3. Further deliberations will take place on the same day, in the presence of the PM. RBI had appointed a committee under former Axis Bank chairman PJ Nayak for improving governance in the sector. The panel had recommended the government give up its control over these banks and reduce stake in these to less than 51 per cent. The above committee was critical about the dual regulation these banks faced —from RBI and the government — and suggested the government refrain from giving directives to these banks. (Source: Business Standard)
Posted on: Thu, 25 Dec 2014 08:28:27 +0000
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