There would be no retrenchment of employees and that their services conditions would also not be affected post merger.
Employee integration and branch rationalisation are major challenges.
As per the mega consolidation plan, Oriental Bank of Commerce and United Bank of India will merge into Punjab National Bank (PNB); Syndicate Bank into Canara Bank; Andhra Bank and Corporation Bank into Union Bank of India; and Allahabad Bank into Indian Bank. Following this merger, PNB will become second largest after the SBI, Canara Bank fourth, Union Bank of India fifth and Indian Bank seventh biggest public sector lender.
Of the three major Budget announcements related to the banking sector, privatisation of PSBs is the most audacious, says Tamal Bandyopadhyay.
Seeking to create a global-sized bank, the Cabinet on Wednesday gave the go-ahead to the merger plan of SBI and its five associates, a step aimed at strengthening the banking sector through consolidation of public banks.
Mergers to create at most six state banks
'We can't have the best of both worlds -- large, efficient, world class government-owned banks, doing social banking and making profits. 'Why not set them free from the shackles of such obligations and run them as business units?' says Tamal Bandyopadhyay.
According to SBI executives, the aim is to do things efficiently with an eye on profitability, and get a feedback on areas, including which business to enter and which to exit.
With the advent of new banks, IT firms will get boostto their businesses.
However, BJP has not given any assurance of support and conveyed to the Finance Minister that the matter will be discussed within the party and take a call, sources said.
The need to allow government shareholding in public sector banks to come down below 51 per cent
According to the RBI's Financial Stability Report, the industry's gross bad-loan is at a 14-year high. As RBI's March 2017 deadline for banks to clean up soured credit looms closer, Shailajanand Mishra takes stock of just how bad the situation is.
The loss-making and debt-laden government carrier has earlier leased space in the 22-storey building to banks and offices but this will be first time that commercial eateries will be allowed in the premises.
Why are investors gung-ho about State Bank? asks Tamal Bandyopadhyay.
DDinesh Kumar Khara is someone who cares for others's ideas and suggestions.
If he takes the people along with him (which he always does); cares for the customers (80 per cent of SBI's new customers are in the 20-40 age group); and doesn't take his eyes off technology, his job is done, says Tamal Bandyopadhyay.
Under the scheme, which seeks to open 75 million accounts by January 26, 2015, an accident insurance cover of Rs 100,000 is provided with every RuPay debit card offered by the National Payments Corporation of India.
At 12:25 PM, the barometer index, the S&P BSE Sensex was down 358 points or 1.3% at 26,368.
Is the SBI chairman leaving the bank in a stronger and better position than what it was? Abhijit Lele finds out.
Auto stocks are weighing on the indices.
I kept insisting that Rs 100 notes were in short supply and there was an urgent need to augment the supply of 100 rupee notes while also rapidly bringing into circulation the proposed new Rs 500 notes. But this was easier said than done because all the note printing machines of the RBI were programmed for printing Rs 2,000 notes and required at least three weeks before the machines could print the new Rs 500 currency notes. The availability of currency paper posed another major bottleneck, and it had to be imported. It was decided to immediately start printing the Rs 500 notes. It was only when the supply of the new Rs 500 notes started improving and the process of change of cassettes at the ATMs gathered momentum that the situation began limping back to normal. A fascinating excerpt from former SBI chairman Rajnish Kumar's The Custodian of Trust: A Banker's Memoir, five years after demonetisation, November 8.
In February 2013, the airline under the then chairman Rohit Nandan decided to shift its base to New Delhi.
The central government, in its typical sledgehammer style, has unleashed the might of its investigative agencies like the Enforcement Directorate against NCP and Shiv Sena leaders.
The government has opted for the RuPay debit card over the Aadhaar-based platform for "last-mile" authentication in its Pradhan Mantri Jan Dhan Yojana.
'I want to leave behind the bank stronger and better than when I took over.'
Hers is a rags-to-riches story for the ages, peppered with risks, determination and strokes of luck.
Addressing a 'nukkad sabha' in favour of Congress nominee Rakesh Sachan in Fatehpur, the Congress general secretary in-charge of eastern Uttar Pradesh said, "The issue of patriotism is raised whenever elections come, but the real questions on farmers, unemployed, women safety are left behind."
'Mamata is synonymous with Bengal, its culture, language, traditions.'
Fears of the Congress not having a credible face, after the death of its three-time chief minister Sheila Dikshit last July, and ceding its vote bank to the Aam Aadmi Party came true with the Arvind Kejriwal-led party capturing the space once occupied by the grand old party.
The scam has offered Lalu Prasad an opportunity to point fingers at Nitish Kumar and Sushil Kumar Modi.
A day after the party's rout in Delhi elections, the knives are out in the Congress with leaders blaming each other and raising questions on whether the party has outsourced the task of defeating the Bharatiya Janata Party to others.
Joining the BJP cannot have been an easy decision for former UP Congress chief Rita Bahuguna Joshi, who grew up with secular values and appears to be a victim of the party's durbar politics. Amit Agnihotri reports.
"The post-mortem report said it was a case of asphyxia due to ante-mortem hanging and suicidal in nature," the SP said.
RJD chief Lalu Prasad Yadav demanded the Bihar CM to sack his deputy and lodge a case against him and arrest him.
The Congress chief gave 'F' to the Modi government for agriculture, foreign policy and job creation, and 'A+' to the prime minister for slogan creation and self promotion.
Prime Minister Narendra Modi earlier called for consensus in passing the bill.
The 47-year-old scion of the Nehru-Gandhi family will face the daunting task of restoring lost glory to the party whose fortunes have been dwindling in the recent past.
'Probably only Sonia-ji knows the extent of what he is doing.'
Trupti Desai's fight earned women the right to enter the inner sanctums of the Shani Shingnapur Temple, the Trimbakeshwar Shiva Temple and the Haji Ali Dargah. Her next target is Sabarimala in Kerala. Aditi Phadnis reports.
Releasing its 70-point programme, Kejriwal called party's manifesto 'holy'.
Indeed, Prime Minister Narendra Modi, who as Gujarat chief minister was considered close to certain business groups and industrialists, has hardly been seen with any Indian business head.
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances