Union Finance Minister P Chidambaram on Saturday had a word of advice for public sector banks: Accept consolidation for fast paced growth of the banking sector.
"The best way to grow is through consolidation. It has to happen in the banking sector. You have to accept this before external forces impose their choice upon you," the minister said after inaugurating a Vijaya Bank branch, in Bangalore.
"I know there is opposition in the banking sector to consolidation. How long can you resist it? As we go along, we have to consolidate our gains both organically and inorganically. The way to grow forward is consolidation," Chidambaram said.
He advised all public sector banks to invest resources in schemes aimed at retraining the staff and to impart multiple skills in them.
"All barriers or artificial divisions between officers, clerks or messengers will go. The future banking organisation will be flat and driven by technology where everything will be available by a click of the mouse," he added.