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Budget 2021: All eyes will be on the package FM unveils for state-run banks

A status check on the consolidation of four sets of state-run banks offers clues to the hard decisions that are needed, write Abhijit Lele and Raghu Mohan

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Eleven months after the effective date of the mergers, the combined market-cap (m-cap) of the merged entities was Rs 84,424 crore (on January 25), or up 30 per cent

Abhijit Lele Raghu Mohan Mumbai

5 min read Last Updated : Feb 01 2021 | 6:10 AM IST

When Finance Minister Nirmala Sitharaman presents her second budget today, all eyes will be on the package she unveils for state-run banks. Will a Bank Investment Company (BIC) come into being? Or are we to settle for recapitalisation — a limited one, at that? And will these make for a substantial difference? A quick look at the mergers of four sets of state-run banks (effective April 1, 2020), reveals that much more may need to be done.

It was in August 2019 that New Delhi decided to merge Punjab National Bank (PNB), Oriental Bank of Commerce (OBC) and United Bank

Topics : Nirmala Sitharaman Budget 2021 Indian Banks public sector banks Indian Economy banking reforms Bank recaptalisation PSU recapitalisation Banking sector Bank mergers

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