Finmin: Ensure credit not disrupted after merger

Finance Minister Nirmala Sitharaman on Thursday met chief executives of two sets of public sector banks (PSBS) which are going to be merged on April 1. After the meeting, the finance ministry tweeted that the banks had been told to ensure that credit was not disrupted because of the amalgamation process.

Finance Minister (FM) Nirmala Sitharaman on Thursday met chief executives of two sets of public sector banks (PSBS) which are going to be merged from April 1.

After the meeting, the finance ministry tweeted that the banks have been told to ensure credit is not disrupted because of the amalgamation process.

“Amalgamating PSBS made a presentation to Sitharaman on their preparedness… to ensure no disruption to credit and enhanced customer experience,” said a statement by the Department of Financial services.

The FM met chief executives of Punjab National Bank (PNB), United Bank of India and Oriental Bank of Commerce along with Union Bank of India, Andhra Bank and Corporation Bank.

The FM will meet officers of the remaining banks on Friday.

The banks presented to the FM their “business and financial plans including credit and deposit growth and year-wise synergy realisation plan”. The FM checked on the preparedness and capacities of the amalgamating banks to handle and address customer queries and difficulties.

From April 1, PNB, Oriental Bank of Commerce, and United Bank of India will combine to form the nation’s second-largest lender. Canara Bank will take over Syndicate Bank; Union Bank of India is planned to be amalgamated with Andhra Bank and Corporation Bank; and Indian Bank will subsume Allahabad Bank.

Immediately from April, the balance sheets and stocks of the banks will be merged. The integration of technology, human resources and branches/ ATMS will take place in a phased manner.