Business Daily from THE HINDU group of publications
Tuesday, Dec 08, 2009
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Tuesday, Dec 08, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
|
|
|
|
|
Home Page
-
Public Sector Banks Money & Banking - Mergers & Acquisitions ‘Govt not forcing public sector banks on consolidation'
Mr Pranab Mukherjee Our Bureau New Delhi, Dec. 7 The Finance Minister, Mr Pranab Mukherjee, on Monday said that although mergers and acquisitions are needed in the interest of the economy, the Government was not forcing public sector banks (PSBs) to go in for consolidation. He made it clear that the Government would endorse consolidation proposals of PSBs if the parameters were in conformity with the Securities and Exchange Board of India and Reserve Bank of India guidelines. Supportive role Responding to a calling attention motion moved by the Communist Party of India (CPI) leader, Mr Gurudas Dasgupta, in Lok Sabha, Mr Mukherjee said that the initiatives for consolidation has to come from the management of the banks themselves with the Government playing a supportive role as the common shareholder. “No, the Government is not taking any initiative for mergers (among PSBs). We do not force anybody to merger. No directive on consolidation is being issued by the Government and the RBI. Let us leave it to the entities themselves,” Mr Mukherjee said. Mr Mukherjee said that the Government has no intention of interfering in the normal and functional activities of PSBs. Interests of stakeholders While examining any merger proposal, the Government will keep in view the interests of the stakeholders, including the employees of the merging banks, Mr Mukherjee added. Broadly, the employees, the owners/shareholders and the customers constitute stakeholders of the banks. Mr Mukherjee highlighted that suitable clauses are incorporated in the scheme of amalgamation/acquisition so that the pay and allowance or the compensation to the employees of merging entities are not altered to their disadvantage. Earlier, Mr Dasgupta wanted the Finance Minister to “come clean” on whether the Government had overtly or covertly taken initiatives to bring about mergers within PSBs. Economic rationale He also sought to know the economic rationale behind State Bank of India (SBI) move to acquire State Bank of Indore when the latter was much better in all parameters when compared with its parent bank. In each of the parameters such as business per employee, deposits per employee, advances per employee and priority sector coverage, the State Bank of Indore's performance was better than SBI's, Mr Dasgupta said. Push for banking, insurance reforms seen Banks: A push for reforms More Stories on : Public Sector Banks | Mergers & Acquisitions
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2009, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|