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No decision yet on PSB merger: Pranab

Finance Minister Pranab Mukherjee on Wednesday said the government has not yet taken a decision on consolidation of public sector banks.

business Updated: Dec 02, 2009 21:52 IST

Finance Minister Pranab Mukherjee on Wednesday said the government has not yet taken a decision on consolidation of public sector banks.

"We have not yet taken any decision (on PSU bank consolidation)," Mukherjee told reporters after releasing a book authored by former power secretary RV Shahi here today. He added that if a policy decision is taken on this, it would be announced in Parliament as it is in session.

The meeting between chairmen of Punjab Nation Bank, Bank of Baroda, Canara Bank, Oriental Bank of Commerce and Union Bank of India with the finance ministry officials on November 18 had sparked off speculation over mergers and acquisitions among the state-owned banks.

Two days after, Dena Bank Chairman and Managing Director DL Rawal had also met the officials. This fuelled speculation that the government might facilitate merger of Dena Bank with Canara Bank, which would create an entity with expected business of around Rs 5 lakh crore in the current fiscal.

In fact, Canara Bank Chairman and Managing Director AC Mahajan had said, "we are looking at geographical synergy so that where we are not present we should have an inorganic growth."

Apart from the merger of State Bank of Saurashtra into the parent SBI and the plans of another subsidiary, State Bank of Indore, for the same, not much is happening on the consolidation front of PSU banks as of now.