INSUBCONTINENT EXCLUSIVE:
Bigger banks would have wider reach, stronger lending capacity and better products and technologyNew Delhi: The government is open to
further consolidation of banks, depending on needs, Minister of State for Finance Anurag Singh Thakur has said
Last year, the government had announced mega amalgamation of 10 public sector banks into four to cater to the needs of an aspirational and
New India.This exercise will create six global sized banks, effective April, and will bring down the number of public sector banks to 12
from 27 in 2017."We have successfully done the mergers and recapitalisation of banks
Insolvency and Bankruptcy Code (IBC) has been successful, which has brought back more than Rs 4 lakh crore to the banks
Further consolidation or merger will depend on the need," Mr Thakur told PTI in an interview.Creation of global sized banks through
consolidation will facilitate Modi government's resolve to make India a USD 5 trillion economy by 2024-25, he said.Bigger banks would have
wider reach, stronger lending capacity and better products and technology to serve customers of New India.Last year in August, the
government had announced merger of United Bank of India and Oriental Bank of Commerce with Punjab National Bank, making the proposed entity
the second largest public sector bank (PSB).Syndicate Bank will be merged with Canara Bank, and Allahabad Bank with Indian Bank
Similarly, Andhra Bank and Corporation Bank will be consolidated with Union Bank of India.In April 2019, Bank of Baroda in a first three-way
merger exercise amalgamated Vijaya Bank and Dena Bank with itself.SBI had merged five of its associate banks - State Bank of Patiala, State
Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore and State Bank of Hyderabad and also Bharatiya Mahila Bank with
itself effective April 2017.Asked about the LIC listing, as announced in the Budget, Mr Thakur said that it will help bring in greater
transparency, public participation and deepen the equity market.Finance Minister Nirmala Sitharaman while presenting the Budget 2020-21 on
February 1 proposed to sell a part of government stake in LIC through an initial public offer next fiscal.The government aims to garner Rs
90,000 crore from the listing of LIC and stake dilution in IDBI Bank in the next fiscal, out of total disinvestment target of Rs 2.10 lakh
crore.The government owns 100 per cent stake in LIC and around 46.5 per cent stake in IDBI Bank.Terming this year's Budget ''Jan Jan Ka
Budget'', Thakur said every strata of the society has been taken well into consideration and major reforms have been undertaken benefiting
youth, women, farmers, investors and middle class.The government has provided Rs 2.83 lakh crore for agriculture, farmer welfare and rural
development."Doubling farmers' income is an agenda for the next two years
We have already fulfilled the commitment of one and half times cost of production of farmers, which the government had promised," he
said.With the announcement of ''Kisan Rail'' and ''Krishi Udaan'' to be launched by Indian Railways and Ministry of Civil Aviation
respectively, for a seamless national cold supply chain for perishables, this too will serve beneficial as it will aid farmers in
facilitating smooth and fast transport of perishable goods, he said.In addition, the government has increased agriculture credit target to
Rs 15 lakh crore for the next fiscal.Mr Thakur said, "from startups to education, internship to apprenticeship, many announcements have been
doneSo, I think more young entrepreneurs, more startups we are going to seeWe see India moving to top three startup countries in the world
in the next couple of years".With regard to helping the MSME sector, he said, the government has asked the RBI to consider extending debt
restructuring window by another year till March 31, 2021.More than five lakh MSMEs have benefitted from restructuring of debt permitted by
the Reserve Bank of India last year, he said.(This story has not been edited by TheIndianSubcontinent staff and is auto-generated from a
