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  • “We have seen the RBI advisory. In view of the decision taken by the Cabinet a week ago, the finance department has issued an order on Wednesday. The department has directed all departments, corporations and civic bodies to not deposit their funds in the private financial institutions,’’ a top bureaucrat told

    The Union Cabinet had last week approved the mega bank consolidation plan under which Oriental Bank of Commerce and United Bank of India will merge into Punjab National Bank; Syndicate Bank into Canara Bank; Andhra Bank and Corporation Bank into Union Bank of India; and Allahabad Bank into Indian Bank.

    The Cabinet has approved the consolidation of 10 public sector banks (PSBs) into four 'mega banks', Finance Minister Nirmala Sitharaman anno...

    The EASE 3.0 reforms agenda commits the PSBs to smart, techenabled banking. Dial-a-loan for doorstep loan facilitation and digitalised branch experience are some of the elements on the agenda. Through the latest roadmap, FM spoke of the future of banking going digital and being data driven.

    The Narendra Modi government had announced the mega merger in August last year.

    More than animal spirits, what were needed were saintly spirits. Calibrated interventions were taken, and a four-pronged approach within a compressed timeframe enabled jettisoning the excess cargo of non-performing assets (NPAs), while sealing points of water ingress.

    “We are expecting the government to notify the merger this week,” United Bank of India managing director Ashok Kumar Pradhan said. The banks will need to follow regulatory formalities to protect the interest of minority shareholders.

    After it is notified, the respective bank boards will meet to give their customary final approval.

    Kumar said banks that are in the middle of the merger process need to be careful on information technology integration. "One of the challenges before public sector banks in the near future is the merger of the bank...IT merger needs to be handled very carefully," Kumar said at an event organised by Indian Banks' Association.

    SBI reported 4,769 cases of banking frauds worth Rs 30,300 crore during the nine-month period ended December 2019. This is about 26 per cent of the Rs 1,17,463.73 crore, which is the total amount of reported cases of banking frauds in PSBs during this period, he said.

    Data sciences, ML and AI could help the banks, which have more than 70% market share, to make a difference to the economy.

    Thakur said during Question Hour that as a result of transparent recognition of stressed assets as NPAs, gross NPAs of PSBs, as per RBI data on global operations, rose from Rs 2,79,016 crore as on March 31, 2015, to Rs 6,84,732 crore as on March 31, 2017 and Rs 8,95,601 crore as on March 31, 2018.

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