No of Public Sector Banks to come down to less than 15 from 22: Economic Advisor
Published: Oct 06, 2017
By TIOLCORPLAWS News Service
NEW DELHI, OCT 06, 2017: THE Principal Economic Advisor in the Ministry of Finance, Sanjeev Sanyal, speaking at an interactive Panel on Building Blocks for a New India, at the India Economic Summit being organized by the World Economic Forum and the Confederation of Indian Industry (CII) at New Delhi today while acknowledging the slowdown prevailing in the Indian economy, said that the current GDP numbers are not the only marker of India's economic performance. India's strong macroeconomic fundamentals such as robust forex reserves, low current account deficit and benign inflation lend stability to the economy. The Government is also looking at fixing the problems relating to employment data, he added.
Mr. Sanyal stated that the Government is looking at the options such as issue of recapitalization bonds or diluting government stake in PSBs for recapitalization of banks. He also mentioned that the number of banks may come down within the 10-15 range from around 22 at present as part of the effort at bank consolidation. There is scope for both the public sector and the private sector banks to co-exist as both have different risk-return profiles.
