The objective is to improve profitability by leveraging economies of scale and avoiding duplication of costs of small PSBs
Ministry of finance has proposed that small public sector banks, with assets of less than Rs. 2 trillion, should be merged with large PSBs, according to a media report.
The objective is to improve profitability by leveraging economies of scale and avoiding duplication of costs of small PSBs, the report said.
The term “assets” include loans and investments made by the bank. Andhra Bank, Bank of Maharashtra and Dena Bank are some of the small PSBs which has less than Rs. 2 trillion of assets, the report added.
Among the large PSBs include Bank of India, Punjab National Bank and Union Bank, the report said further.
Ministry of finance has proposed that small public sector banks, with assets of less than Rs. 2 trillion, should be merged with large PSBs, according to a media report.The objective is to improve profitability by leveraging economies of scale and avoiding duplication of costs of small PSBs, the report said.
The term “assets” include loans and investments made by the bank. Andhra Bank, Bank of Maharashtra and Dena Bank are some of the small PSBs which has less than Rs. 2 trillion of assets, the report added.
Among the large PSBs include Bank of India, Punjab National Bank and Union Bank, the report said further.
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