Govt unveils merger of 10 PSU banks to become four major entities

Agencies
August 30, 2019

New Delhi, Aug 30: Government on Friday announced merger of 10 public sector banks (PSBs) into four strong lenders with countrywide networks and global reach to boost credit and revive economic growth in the nation's bid to become a five trillion dollar economy in the next five years.

After this, the total number of PSBs will come down to 12 from 24 banks, said Finance Minister Nirmala Sitharaman at a press conference.

Apart from this, the government announced Rs 55,250 crore upfront as capital infusion in the PSBs.
"In 2017, where there were 27 PSBs. There are now only 12 PSBs operating to target the 5 trillion dollar economy," she said.

Sitharaman said the Punjab National Bank, Oriental Bank of Commerce and United Bank will be merged into one entity to make the second largest PSB with a business of Rs 17.95 lakh crore and 11,437 branches.

Canara Bank and Syndicate Bank will be merged to become fourth largest PSB with a business of Rs 15.2 lakh crore. Union Bank of India, Andhra Bank and Corporation Bank will become fifth largest PSB while Indian Bank will merge with Allahabad Bank to become seventh largest PSB with business of Rs 8.08 lakh crore.

Bank of India and Central Bank of India will continue as individual entities. Indian Overseas Bank, UCO Bank, Bank of Maharashtra and Punjab and Sindh Bank will also continue to operate on their own.

"These big banks will have enhanced capacity to increase credit and bigger risk appetite, with national presence and global reach," said Sitharaman. Nearly 88 per cent of all PSB business will be with these consolidated banks.

The government's intention is not just to give capital but also give good governance. There is no government interference in commercial decisions of banks, said the Finance Minister adding that no retrenchment has taken place post the merger of Bank of Baroda, Dena Bank and Vijaya Bank. The staff has been redeployed and best practices in each bank have been replicated in others. 

"Gross non-performing assets have come down from Rs 8.65 lakh crore to Rs 7.9 lakh crore," she said. "Special agencies have been formed to monitor loans above Rs 250 crore to avoid a Nirav Modi like situation."

Four non-banking finance companies (NBFC) have already found liquidity solution through a settlement with banks, said Sitharaman.

All PSU banks will now have a non-executive chairman, a position earlier existed only in State Bank of India (SBI), India's largest lender. The PSBs will have to appoint a Chief Risk Officer, who will be provided market-level compensation. Longer terms will be given to directors on management committees to ensure continuity.

The Finance Minister said in the 2.6 trillion dollar Indian economy, credit availability currently stands at $1.9 trillion, or nearly 72 per cent of GDP. She said the government is committed to improving credit flow and eight PSBs have already launched repo-linked loans since her booster measures for the economy last Friday.

"We need to lay a strong foundation for the financial sector," said Sitharaman. "About 3.38 lakh shell companies have been closed. The resolutions for stressed assets are happening through the Insolvency and Bankruptcy Code."

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News Network
July 10,2020

Bengaluru, Jul 10: Alarmed by the surging COVID-19 cases across the state, especially in Bengaluru, Karnataka Chief Minister BS Yediyurappa on Thursday urged the state capital’s residents not to visit their villages to prevent the infection’s spread.

“I urge the people of Bengaluru not to travel to their villages and prevent the infection from spreading in rural areas,” Yediurappa told reporters.

Admitting that the battle against the virus would be long, he said that the fight against COVID-19 could be won only through persistent efforts and with people’s cooperation with the frontline ‘warriors’.

“Combating the pandemic through preventive measures, providing treatment to the infected and saving lives are our priority,” he said.

With a record 2,228 positive cases on Thursday, the southern state’s COVID-19 tally shot up to 31,105, including 17,782 active cases, while 457 people have died of the infection till date, 17 just in the last 24 hours.

Of the new cases in the state, Bengaluru accounted for 1,373, taking its tally to 13,882, including 10,870 active, while 177 have succumbed to the virus since March 9.

No deaths were, however, reported in the city on Thursday.

Of the 457 patients in intensive care units (ICU) across the state, 292 are in Bengaluru hospitals.

Since unlock began on June 1, COVID-19 cases shot up to 15,242 on June 30 from 3,221 on May 31 and to 31,105 in 9 days since July 1.

Similarly, in Bengaluru, positive cases shot up to 4,555 on June 30 from 358 on May 31 and rose to 13,882 in 9 days since July 1.

The Chief Minister also appealed to all legislators of the ruling and opposition parties to give priority to contain the disease in their Assembly segments.

“Visit the COVID-19 designated hospitals and inspect if the required facilities are in place and bring any shortcomings to our notice,” the CM said

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News Network
June 21,2020

India on Sunday witnessed annual solar eclipse or 'surya grahan' 2020, the third eclipse even for this year after first two lunar eclipses took place in January and June and the last annual solar eclipse of this decade.

The solar eclipse started from around 9 a.m. across the Indian map as the Sun, the Moon, and the Earth came in a straight line, and the country witnessed the 'deepest' annular solar eclipse in over a century.

Astrologers said it a fourth super rare hybrid eclipse which is a mix between an annular and total solar eclipse.

Areas like Hyderabad, Chennai, Bhubaneshwar, Kolkata, Lucknow, Mumbai, Delhi, Patna, Shillong and more witnessed a partial phase of the annular solar eclipse from 9 a.m.

In the eclipse, the distance of the Moon and Earth will be larger than usual which means the moon will not be able to cover up the sun fully and will leave out the borders of the sun - giving an appearance of a "Ring of Fire".

Press Information Bureau in a tweet informed that it is the last annular solar eclipse in India of this decade.

People can catch glimpse of the partially covered sun between 10 a.m. and 2.28 p.m. as per the time differing as locations in India. The eclipse will continue for over three hours covering 84 per cent Sun.

There are three types of solar eclipses - total, partial, and annular.

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News Network
February 16,2020

Udupi, Feb 16: Nine people were killed after a private bus collided with a large roadside boulder in Udupi district in Karnataka on Saturday, the police said. The accident took place on Saturday evening, at around 5.45 pm, on the Mulnur Ghat at Abbas Kattingeri in Mala village, while the bus was on its way to Mangaluru from Sringeri, reported the news channel.

The bus, which was reportedly carrying around 35 passengers, was trying to manoeuvre a turn while travelling on a ghat road when the driver allegedly lost control of the vehicle. The vehicle hit a massive boulder and the impact caused seven people to die on the spot. Two others passed away while they were on the way to the hospital.

The deceased passengers have been identified as Radha Ravi, Yogendra, Preetham Gowda, Basavaraju, Angana, Sharul and Ranjitha. The cleaner of the bus was also killed in the accident.

According to reports, the passengers in the bus were mostly in their early 20s and were employees of Vital Records Private Limited near JCK Industrial Park. Century Vital Records is a data security company which works in the Hebbal Industrial Mysuru. The group was visiting Udupi, Hornadu and Kudremukh.

While some of the injured persons were rushed to Manipal hospital, others were taken to the Karkala city government hospital, police said.

The police have said that rash and negligent driving by the driver is likely to have caused the accident. A case has been registered at the Karkala Rural Police Station, the police said.

Last month, three persons were killed and four others were injured after a fatal collision between a van and a bus near Bengaluru. Both the vehicles caught fire after the impact, but while passengers of the bus, travelling from Bengaluru to Shivamogga, managed to escape, the three passengers who were trapped in the van could not escape and were charred to death.

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