With the UPA government speeding up the reforms process, public sector banks have also stepped on the gas. Bank of India (BoI) is ready for consolidation, its chairman and managing director TS Narayanasami has said.
?We are very keen to do so. But, have not yet found a counterpart for the possible merger,? he said on the sidelines of a banking conclave.
Earlier, it was rumoured that BoI and Union Bank of India would merge and the move had its approval from the RBI. However, the government had put on hold all proposals to merge state-owned banks following opposition from the Left parties. Now, with the Left off its back, the government wants to push forward its reforms agenda, but its not clear whether this proposal may again see light of the day. The merger between the UBI and BoI would have created the country?s second largest commercial bank after SBI.
Finance minister P Chidambaram had also said on Thursday he wanted to fast-track the financial bills, particularly those on insurance, banking regulation and pension. Standard Chartered Bank India CEO Neeraj Swaroop, also sees consolidation in the banking sector happening among the PSBs and also between public and the private sector banks.
