PSU bank stocks surge in anticipation of merger announcement

PSU bank stocks surge in anticipation of merger announcement”

"The consolidation in the banking sector will create higher efficiencies through better utilization of capital, greater credit disbursal, focused customer service and global expansion opportunities", said Rashesh Shah, chairman and CEO, Edelweiss Group.

The Finance Minister further informed that specialised agencies have been set up to monitor every loan which is over Rs 250 crores.

Venkatachalam, while speaking to reporters, said that bankers will hold massive demonstrations and also wear black badges.

"For banks to grow and support the economy, they need capital. Unless capital issue is resolved, I don't think there would be much action by banks", Guha said.

The FM also announced that banks will be infused with capital to be able to cover mergers and compliance costs. The mega-merger was announced by Finance Minister Nirmala Sitharaman during a press conference on Friday.

Crisil senior director Krishnan Sitaraman said consolidation will bring in economies of scale, increase operating efficiencies and bring in business synergies. "The employees will only benefit", he said. Andhra Bank is small and Corporation Bank is more strong in south as well as in other areas.

J Packirisamy, MD & CEO of Andhra Bank said, "We are getting merged with Union Bank of India along with Corporation Bank".

Announcing a slew of measures to empower the public sector banks, Nirmala Sitharaman said a board committee of nationalised banks will appraise the performance of general managers and higher positions.

All of those mentioned here will be merged now with larger banks.

She said the creation of next-generation banks was imperative for India to become a U.S. $5 trillion economy in the next five years.

"The move underlines the fact that the government recognises the importance of a robust banking system in achieving the goal of Dollars 5 trillion economy as bigger banks will be better armed to meet the credit needs of a fast growing economy like ours", Kumar said.

Besides, seven other banks will be merged to form three larger Public Sector Banks (PSBs).

Punjab National Bank, Oriental Bank of Commerce and United Bank would be merged into a consolidated bank, which will become the second largest state-controlled bank in the country.

In January this year, the Union Cabinet had approved merger Dena Bank and Vijaya Bank with Bank of Baroda. The combined advances base of the merged bank will be Rs 6.61 lakh crore and the deposit base will stand at approximately Rs 8.6 lakh crore.

Sitharaman added that the gross NPAs of Public Sector Banks have come down to Rs. 7.9 trillion in March quarter of the last fiscal year, from Rs. 8.65 trillion in the previous December quarter.

Like this



31 August 2019
Ireland says no "credible" proposals from United Kingdom on replacing Brexit backstop
The European Commission has urged EU countries, in the event of a no deal, to "take a generous approach to the rights of United Kingdom citizens in the EU, provided that this approach is reciprocated by the UK".

31 August 2019
RFK assassin Sirhan Sirhan stabbed at local prison: TMZ
He said the person, whose identity he could not release, was taken by ambulance to a hospital shortly before 2:50 p.m. Donovan include Suge Knight , Lyle and Erik Menendez , Jesse James Hollywood and Manson Family member Tex Watson .

31 August 2019
James Anderson ruled out of Ashes, England call up Craig Overton
The 37-year-old Lancashire paceman had tried to get fit for the fourth Test at his Old Trafford home ground starting on Wednesday. Overton, who featured twice in the 2017-18 Ashes, is likely to join Sam Curran in vying with Chris Woakes for the No. 8 spot.

31 August 2019
How to watch Chelsea vs. Sheffield United
According to him, Kante and Pedro are not fit, while Rudiger will feature for Chelsea's Under 23 squad tonight. We'll try to get him fit over the (international) break.

31 August 2019
Not involved in failed Iranian satellite launch: Donald Trump
Among other reasons, Trump faulted the worldwide agreement for not limiting Iran's missile development. Tehran denies the USA accusation that such activity is a cover for ballistic missile development.

31 August 2019
US Officials Move To Block Trans-Pacific Cable
Both Google and Facebook have yet to issue official responses to this news. In 2016, Alphabet Inc (NASDAQ: GOOG ) (NASDAQ: GOOGL ) and Facebook, Inc .

31 August 2019
Trump Speaks With Governors About Hurricane Dorian
On Friday morning, Dorian was a category 2 hurricane located north-east of the Bahamas, with maximum sustained winds of 110mph. The Hurricane Center says more strengthening is forecast and Dorian is expected to become a major hurricane later in the day.

31 August 2019
Jerry Jones expects Ezekiel Elliott to miss start of Cowboys' season
Jerry Jones has apparently come to grips with this development: His star running back is going to miss some regular season games. The Cowboys face division rival the New York Giants on September 8. "The agent said Jones" reaction was disrespectful.

31 August 2019
Hurricane Dorian gains strength as Florida braces for potential ‘monster’ storm
Supermarkets ran out of bottled water, and long lines formed at gas stations, with fuel shortages reported in places. Despite uncertainty in the forecast, Florida residents are bracing for Hurricane Dorian to make landfall .

31 August 2019
Pochettino calls Spurs exit rumours 'stupid' before Arsenal showdown
We talked about everything. "The most important thing is to help the team on the pitch and make sure the communication is clear.I hope that I can extend my life here".