Explained: How to read the mergers of public sector banks | Explained News, The Indian Express

Explained: How to read the mergers of public sector banks | Explained News, The Indian Express

Edited by Explained Desk |New Delhi |Updated: August 31, 2019 7:55:28 am

Explained: How to read the mergers of public sector banks

The merger announcement was followed by an equity infusion move of Rs 55,250 crore in these banks to enable them to grow their loan book. With these series of mergers, the number of state-owned banks is down to 12 from 27.

According to the government, banks have been merged on the basis of likely operating efficiencies, better usage of equity and their technological platform. (File)

The Centre Friday announced a mega amalgamation plan, the third in a row, that merged ten public sector banks into four larger entities, alongside board level governance reforms aimed at improving their financial health and enhancing their lending capacity to support growth.