{"id":35459,"date":"2018-10-31T17:41:23","date_gmt":"2018-10-31T12:11:23","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=35459"},"modified":"2018-10-31T17:41:23","modified_gmt":"2018-10-31T12:11:23","slug":"new-mechanism-to-spur-psb-mergers","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/new-mechanism-to-spur-psb-mergers\/","title":{"rendered":"New mechanism to spur PSB mergers:"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/todays-paper\/tp-business\/new-mechanism-to-spur-psb-mergers\/article19549292.ece\"><span style=\"font-weight: 400;\">New mechanism to spur PSB mergers<\/span><\/a><span style=\"font-weight: 400;\">:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Context:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">The Cabinet approved \u2018in-principle\u2019 the constitution of an alternative mechanism, likely to be a ministerial group, that will oversee the proposals for mergers among banks.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Explanation:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">As of today, there are 20 public sector banks plus the State Bank of India (SBI).<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Adding SBI\u2019s five subsidiaries and Bharatiya Mahila Bank had already been merged with the country\u2019s largest bank.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The Centre\u2019s nudge towards consolidation among public sector banks assumes significance as most of them are grappling with huge levels of non-performing assets or NPAs, slow credit off take and resultant pressures on capital adequacy.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Benefits:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">It adds commercial strengths and prevents multiplicity of resources being spent in the same areas.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">It also improves the capacity of the banking system to absorb shocks that the market throws up.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Suggestions:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Stronger public sector banks will help meet the credit needs of a growing economy, absorb shocks and give them the capacity to raise resources without depending unduly on the state exchequer.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>New mechanism to spur PSB mergers: Context: The Cabinet approved \u2018in-principle\u2019 the constitution of an alternative mechanism, likely to be a ministerial group, that will oversee the proposals for mergers among banks. Explanation: As of today, there are 20 public sector banks plus the State Bank of India (SBI). Adding SBI\u2019s five subsidiaries and Bharatiya&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/new-mechanism-to-spur-psb-mergers\/\">Continue reading <span class=\"screen-reader-text\">New mechanism to spur PSB mergers:<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-35459","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704842674},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/35459","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=35459"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/35459\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=35459"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=35459"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=35459"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}