The amalgamation of PSBs, as envisaged, has contributed to improving operational efficiency and financial soundness of banks through streamlining of operations and reduction in costs, thereby resulting in increasing consolidated business of banks, Minister of State for Finance Pankaj Chaudhary said
New Delhi:There is no proposal under consideration before the government on the merger or consolidation of public sector banks (PSBs) at present, Minister of State for Finance Pankaj Chaudhary said on Monday.
Chaudhary, in a written reply to the Lok Sabha, said the amalgamation of PSBs helped create stronger competitive banks with economies of scale and scope while enabling the realisation of wide-ranging synergies.
Leveraging networks, better access to low-cost deposits, increased ability to support larger ticket-size lending, and competitive operations by virtue of greater financial capacity have provided the amalgamated banks a substantial rise in customer base, market reach and operational efficiency, he added.
Synergy was also gained due to increased scope of operations and improvement in cost efficiency, with the adoption of best practices and digitisation, he said.
The amalgamation of PSBs, as envisaged, has contributed to improving operational efficiency and financial soundness of banks through streamlining of operations and reduction in costs, thereby resulting in increasing consolidated business of banks, the minister noted.
Quoting Reserve Bank of India data, he said the consolidated total business of Bank of Baroda, in which Vijaya Bank and Dena Bank were amalgamated with effect from April 1, 2019, grew from Rs 16.1 lakh crore in March 2019 to Rs 27.0 lakh crore in March 2025.