Merger of banks in India
The chairman of India's largest public sector bank, State Bank of India, has rightly said that the bank is too big and more mergers are not advisable. SBI already has 20 per cent of banking business. Recent mergers of smaller branches, and recently of Mahila Bank, have already over-burdened the largest public-sector bank. Rather it is time that some accounts of central and state governments and of public sector undertakings (PSUs) presently existing at SBI may be shifted to other major public sector banks, which in future are to be made anchor banks. Also, the SBI chief advocates for urgent implementation of mega-merger of 21 public sector banks with other five anchor banks.
- Madhu Agrawal, Delhi