Cabinet fast tracks merger of PSU banks

Govt promises no job losses; mergers by share swaps, no cash deals

The Cabinet on Wednesday approved a framework to speed up mergers of public sector banks, the first of which could take place by March.

The mergers will not involve any cash but only share swaps. The government also said there would be no job losses after any of the mergers. PSU bank unions had gone on a strike on Tuesday.  

The decision lifted banking stocks, but bankers said the decision should not be forced on them. Finance Minister Arun Jaitley made it clear the process would be initiated by the boards of the banks. An official said a number