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Government asks RBI to identify banks for merger

The government has asked the Reserve Bank of India (RBI) to prepare a list of candidates for merger among 21 government banks as it seeks to strengthen a banking system laden with bad debt, people familiar with the matter said.

In a meeting this month, finance ministry officials also asked RBI to suggest a time frame for the consolidation, the people said, asking not be named as the information isn’t public.

The government bank merger move is aimed at creating fewer, better-capitalized lenders and improving regulatory oversight, they said.

(Source : Economic Times)

Read : Bank Mergers: Is it the panacea for the Banking Sector?

Jai

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