Govt unveils merger of 10 PSU banks to become four major entities

Agencies

August 30, 2019

New Delhi, Aug 30: Government on Friday announced merger of 10 public sector banks (PSBs) into four strong lenders with countrywide networks and global reach to boost credit and revive economic growth in the nation's bid to become a five trillion dollar economy in the next five years.

After this, the total number of PSBs will come down to 12 from 24 banks, said Finance Minister Nirmala Sitharaman at a press conference.

Apart from this, the government announced Rs 55,250 crore upfront as capital infusion in the PSBs.
"In 2017, where there were 27 PSBs. There are now only 12 PSBs operating to target the 5 trillion dollar economy," she said.

Sitharaman said the Punjab National Bank, Oriental Bank of Commerce and United Bank will be merged into one entity to make the second largest PSB with a business of Rs 17.95 lakh crore and 11,437 branches.

Canara Bank and Syndicate Bank will be merged to become fourth largest PSB with a business of Rs 15.2 lakh crore. Union Bank of India, Andhra Bank and Corporation Bank will become fifth largest PSB while Indian Bank will merge with Allahabad Bank to become seventh largest PSB with business of Rs 8.08 lakh crore.

Bank of India and Central Bank of India will continue as individual entities. Indian Overseas Bank, UCO Bank, Bank of Maharashtra and Punjab and Sindh Bank will also continue to operate on their own.

"These big banks will have enhanced capacity to increase credit and bigger risk appetite, with national presence and global reach," said Sitharaman. Nearly 88 per cent of all PSB business will be with these consolidated banks.

The government's intention is not just to give capital but also give good governance. There is no government interference in commercial decisions of banks, said the Finance Minister adding that no retrenchment has taken place post the merger of Bank of Baroda, Dena Bank and Vijaya Bank. The staff has been redeployed and best practices in each bank have been replicated in others.

"Gross non-performing assets have come down from Rs 8.65 lakh crore to Rs 7.9 lakh crore," she said. "Special agencies have been formed to monitor loans above Rs 250 crore to avoid a Nirav Modi like situation."

Four non-banking finance companies (NBFC) have already found liquidity solution through a settlement with banks, said Sitharaman.

All PSU banks will now have a non-executive chairman, a position earlier existed only in State Bank of India (SBI), India's largest lender. The PSBs will have to appoint a Chief Risk Officer, who will be provided market-level compensation. Longer terms will be given to directors on management committees to ensure continuity.

The Finance Minister said in the 2.6 trillion dollar Indian economy, credit availability currently stands at $1.9 trillion, or nearly 72 per cent of GDP. She said the government is committed to improving credit flow and eight PSBs have already launched repo-linked loans since her booster measures for the economy last Friday.

"We need to lay a strong foundation for the financial sector," said Sitharaman. "About 3.38 lakh shell companies have been closed. The resolutions for stressed assets are happening through the Insolvency and Bankruptcy Code."

Comments

Add new comment

Coastaldigest.com reserves the right to delete or block any comments.
Coastaldigset.com is not responsible for its readers’ comments.
Comments that are abusive, incendiary or irrelevant are strictly prohibited.
Please use a genuine email ID and provide your name to avoid reject.

SIT raids rape accused BJP MLA Munirathna’s residence, 15 other locations

News Network

September 28,2024

Bengaluru, Sep 28: The Special Investigation Team (SIT) probing charges against arrested Karnataka BJP MLA N. Munirathna Naidu, including allegations of rape, honey-trapping, and other offences, on Saturday conducted raids at his residence and 15 other locations across the city.

Sources confirmed that the raids were taking place at his Vyalikaval residence and other properties owned by the BJP MLA. The operation is being conducted by the SIT under the Criminal Investigation Department (CID) led by ACP Kavitha.

The team is examining documents, electronic devices, and other materials related to the rape and honey-trapping case. The SIT is being supported by experts from the Forensic Science Laboratory (FSL), with Superintendent of Police (SP) Sowmya Latha also participating in the search and inspection at Munirathna’s Vyalikaval residence.

According to sources, the raids were triggered by information provided by the victim, who alleged that Munirathna recorded footage of sexual assaults and used it to blackmail politicians and public servants, including IAS and IPS officers.

The victim reportedly revealed that she was used to entrap the woman who had lodged a rape case against a senior IFS officer. She was allegedly instructed to frame the rape victim in a drug peddling case.

The complainant told police that she was tasked with capturing compromising videos of the rape victim who had filed the case against the IFS officer. She claimed that, after several failed attempts to obtain the videos, the victim was drugged with sleeping pills, and obscene footage was recorded without her consent. Later, the IFS officer was bailed out from the charges.

Furthermore, the complainant has accused MLA Munirathna of raping her at his office within the state legislature, in his official vehicle, and at his godown. She has alleged that he recorded videos of these assaults.

Police sources also revealed that the victim in the MLA's case provided details of a plot involving sending HIV-infected women to Munirathna's targets in an attempt to ruin them politically and personally. She also disclosed the names of several politicians whom she had entrapped through honey-trapping.

The woman further claimed that Munirathna had threatened to have her son kidnapped and killed if she refused to comply with his demands. According to her, the MLA had a well-organised team dedicated to carrying out these honey-trapping operations, and she provided details about his close associates and relatives involved in the scheme.

Munirathna, who was in judicial custody following his arrest in the rape and honey-trap case, has now been taken into the custody of the SIT.

The MLA was transferred from Bengaluru Central Jail to the CID office on the night of September 24. The BJP legislator, however, has denied all the allegations, claiming they are false.

Karnataka Congress leader D.K. Suresh had alleged that Munirathna was trying to infect his adversaries with HIV and that the government should investigate the matter.

Comments