Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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: empanelment :: VAT Audit :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: ACCOUNTING STANDARDS :: due date for vat payment :: list of goods taxed at 4% :: form 3cd :: TDS
 
 
Mergers and Acquisitions »
 Surge in due diligence activity brings flood of business to big four
 As Reliance rolls out Jio Phone for 'free', mergers among smaller telcos may accelerate
 Building market institutions can help M&As move faster
 How corporate mergers and acquisitions impact small investors
 Merger control triggers and thresholds in India
 Centre eases pre-merger filing normsa
 Mergers and Acquisitions in Indian banking sector not threat for fintech players
 This part of our journey is value discovery: Kumar Mangalam Birla
 Health care mergers, acquisitions lead surge in global deals
 Tata Teleservices could be acquired by Airtel as India heads towards four-operator market
 Deals of the day-Mergers and acquisitions june 28, 2017

Banking consolidation 2nd wave: FinMin sees room for 3-4 more PSB mergers
May, 15th 2017

The finance ministry sees a scope of merger among 3-4 more public sector banks — in what could be the second wave of consolidation in the banking sector. Sources said the government will work on a twin-pronged strategy that prefers mergers among strong banks while at same time shrinks the capital base and balance sheet of the weak banks. The Centre has already started signing memorandum of understanding (MoU) with the state-owned banks linking capital infusion to performance. Non-performing banks are being asked to sell assets, close non-profitable branches and shrink their balance sheet, in an attempt to reduce the strain on budgetary resources, finance ministry sources said.

“There are 3-4 PSU banks where we have scope for consolidation. The discussions on merger are yet to fructify but the preference is for a merger among relatively strong banks instead of consolidating a weak bank into a strong bank,” a finance ministry official said. Punjab National Bank, Bank of Baroda, Bank of India and Canara Bank are being seen as the lead bankers to merge other banks with themselves, the sources said. The government has already sounded out a couple of large banks for possible acquisitions in the PSU banking space.

“There have been a number of discussions on possible mergers but these are really at initial stages. Ultimately, it is the government which has to take a call on these and we can only look to implement it,” a senior executive at the Punjab National Bank said on condition of anonymity, without divulging any further details.

Last month, the RBI Governor Urjit Patel said in New York that the banking system in India could be better off if some public sector banks are consolidated so as to have fewer but healthier entities. Patel had also said that consolidation of banks could also entail sale of real estate where branches are redundant as well as offering voluntary retirement schemes to manage headcount and adding younger, digital-savvy personnel.
Country’s largest lender State Bank of India has completed the process of merging State Bank Of Bikaner & Jaipur, State Bank Of Hyderabad, State Bank Of Mysore, State Bank Of Patiala and State Bank Of Travancore and Bharatiya Mahila Bank with itself. In the next leg of consolidation, while a merger among relatively strong banks is likely, weak banks are expected to shrink in their size. This is expected to reduce the pressure on the government of providing capital to the banks. In 2015, Centre launched the Indradhanush programme, to infuse Rs 70,000 crore into public banks. The government estimates that public banks would require about Rs 1.8 lakh crore of capital. This year Centre will put in Rs 10,000 crore into public banks.

In his press briefing last week on the ordinance empowering the RBI to speed up the NPA resolution process, finance minister Arun Jaitley indicated that the weak banks will have to sell assets, reduce overheads, shut loss-making branches, among others. “We are also planning the process that when the MoUs are signed, with the public sector banks which seek capitalisation, that there would be some specific provision in those MoUs also, which would be incorporated. This would relate to immediate cash release initiatives, such as sale of assets, closure of non-profitable branches, reduction of overheads, business turnaround initiatives, such as strengthening of the credit appraisal process under active NPA management and several others,” Jaitley had said.

‘PERFORMANCE-LINKED CAPITAL INFUSION’

* The Centre has already started signing memorandum of understanding (MoU) with the state-owned banks linking capital infusion to performance
* Non-performing banks are being asked to sell assets, close non-profitable branches and shrink their balance sheet, to reduce the strain on budgetary resources

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Bath SEO Company Birmingham SEO Company Bradford SEO Company Brighton and Hove SEO Company Bristol SEO Company Cambridge SEO Company Canterbury SEO Company Carlisle SEO Company Chester SEO Company Chichester SEO Company Coventry SEO Compan

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