the strategy used by the finance minister for the merger of public sector bank
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Answer:
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Answer:
The strategy used by FM for merger of PS banks.
Explanation:
In recent statements, FM announced the merging of top private sector banks into smaller entities. This is done with an aim to help support the Capital growth, that most small and individual private banks are facing due to economic crises.
This move will help the banks to ensure that more amount of loans can be offered by them to the lenders. Apart from this some of the private banking sectors will also receive fresh capital assistance that would be equivalent to INR 16,000 crore.
As a part of the Mega Amalgamation plan, it is obvious that over ten smaller private sector banks will be merged into four smaller entities nationwide. The top level management will be done by banking board to ensure that the financial health of these banks get to normal.
In-turn the FM hopes to infuse an overall equity of INR 55,250 crore within the bank ledgers. As a part of the merger plan four of the top rated private sector banks would also include PNB, OBC, UBI which will be merged to form second largest private sector bank in the nation.
Included are Canara Bank and Syndicate bank merging while the UBI will undertake the Andhra bank and Co-operation bank. At the same time Allahbad bank and Indian bank will merger into one single entity.