Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: VAT RATES :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: list of goods taxed at 4% :: form 3cd :: empanelment :: cpt :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD
« Mergers and Acquisitions »
 The Role Of Brand In Petroleum Mergers And Acquisitions
 Mergers and Acquisitions: What Happens After the Announcement?
 Agency mergers and acquisitions continue to be strong for first-half 2016
 The Intricacies Of Financial And Legal Relationships In M&A
 3 integration considerations for Mergers & Acquisitions
 Mergers and acquisitions take centre-stage as funding for start-ups dries up
 Mergers and Acquisitions reach highest quarterly value in India
 18 digital health exits (mergers, acquisitions, and IPOs) in Q3 2016
 Number of mergers and acquisitions rise in 2016, Experian finds
 Indian startups are more willing than ever to acquire and be acquired
 India’s mergers and acquisitions reaches highest quarterly value in Q3 2016: Report

Govt drops bank M&A plans
February, 09th 2010

The government has decided not to take any fresh initiatives to discuss mergers and acquisitions (M&As) among public sector banks, following adverse views expressed by the Reserve Bank of India (RBI) and reservations from political quarters.

In December last year, the finance ministry had asked five state-run banks Punjab National Bank, Canara Bank, Union Bank of India, Bank of Baroda and Bank of India to explore merger opportunities in the banking industry.

Now, ministry officials and senior bankers familiar with the development confirmed to Business Standard that the finance ministry has decided to shelve the idea.

No bank has approached the government with any merger plan or target yet. Only some big banks are open to the idea, but nothing can happen unless there is some political will and consensus, which is not emerging. Bank unions have also opposed the move, a finance ministry official said.

There is no plan for a further debate on the matter unless some banks approach the government with a proposal for consolidation, which is highly unlikely in the present circumstances. No bank is thinking on those lines, the chairman of a large public sector bank added.

When the initiative was initially discussed, the finance ministry had not involved RBI in the process because it said the talks were informal. It was planning to consult the central bank only after some merger plans were firmed up.

But, RBI has clearly stated its aversion to M&As, saying financial inclusion and not bank consolidation should be the priority. In November, RBI Deputy Governor K C Chakrabarty had said consolidation in the sector can wait and the need of the hour was to extend banking services to more citizens.

The December meeting took place between Additional Secretary (Financial Services) G C Chaturvedi and the five bank chairmen.

After this meeting some consultants, including McKinsey, Ernst & Young, approached the government and made presentations on possible mergers and a roadmap for consolidation. Finance ministry officials said they had not invited the consultants.

One of the consultants, however, said Finance Secretary Ashok Chawla made a presentation to Finance Minister Pranab Mukherjee on consolidation in December, in which some of the consultants suggestions were incorporated.

Financial Services Secretary R Gopalan had recently clarified that the government would not force banks into consolidation, but will bless marriages if the management of two banks came forward.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Sitemap

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions