Rising bad loans in the country has prompted the Department of Financial Services (DFS) to consider a merger of some of the Public Sector Banks.
DFS may be merging IDBI Bank, Bank of Baroda, Oriental Bank of Commerce and the Central Bank of India. The resulting entity could emerge as the second largest PSU bank with combined assets of Rs 16.58 trillion. Also, these four banks reported of losses for the year ending March 31 2018, at a collective Rs 21646.38 crore.
Poor asset quality had crippled the lending ability of these banks. A merger could pave way for selling of assets, reducing overheads and closure of money-losing businesses including branches.
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Government plans merger of PSU banks to stem bad loans
By IndianMandarins - 2018-06-04 07:56:06
Rising bad loans in the country has prompted the Department of Financial Services (DFS) to consider a merger of some of the Public Sector Banks.
DFS may be merging IDBI Bank, Bank of Baroda, Oriental Bank of Commerce and the Central Bank of India. The resulting entity could emerge as the second largest PSU bank with combined assets of Rs 16.58 trillion. Also, these four banks reported of losses for the year ending March 31 2018, at a collective Rs 21646.38 crore.
Poor asset quality had crippled the lending ability of these banks. A merger could pave way for selling of assets, reducing overheads and closure of money-losing businesses including branches.
