Merger of weak public sector banks cannot be ruled out in a run up to meet Basel III norms, a top bank official said today. “I think they (government) will be looking to two quarters, December 16 (Q3) and March 17 (Q4) and then a decision may be taken on merger of banks specially which are not doing well,” United Bank of India (UBI) Managing Director and CEO P K Bajaj said at a post-budget panel discussion organised by the Calcutta Chamber of Commerce.
However, he clarified that this has not yet been announced as of now and government was concentrating on merging associate banks of SBI with the parent.
Bajaj pointed out that Rs 10,000 crore each for FY2017-18 and FY2018-19 for recapitalisation of banks is not adequate given the stress in the banking system due to core sectors like steel, power, infrastructure and coal.
SOURCE FINANCIAL EXPRESS
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