Advocate to extend the execution of ten banks' merger

Mumbai, Ta. 15 February 2020, Saturday

Six months after the merger of ten public sector banks in the country and the announcement of their conversion into four banks, the central government has become cautious on the issue. The deadline for the merger is now two and a half months away.

The Prime Minister wants to know the consequences of the Bank of Baroda merger, so a final decision on the ten banks merger will be taken only after that, a government official said.

The government's notification for the merger has also been deferred, which has resulted in the board of banks currently announcing the merger. The Finance Ministry intends to appear before the Prime Minister before finalizing the final decision on the merger of the ten banks. The Bank of Baroda's results for the December quarter are worrying.

In the third quarter, it has net loss of Rs 5 crore. The bank has shown a huge loss as the NPA has to make additional provision. The Union Cabinet has not approved the merger scheme in its last two meetings, which has also caused the bank's boards to worry. Vijaya Bank and Dena Bank have been merged with the Bank of Baroda as they go into effect from 1st April. The merger of these three banks was completed in a timely manner.

This is not the case in the case of ten banks. The technological aspect has not yet been completed even after ten months have passed since the Bank of Baroda merger, the official added.