Govt Says No Proposal for Public Sector Bank Merger at Present

The Government of India has clarified that there is currently no proposal under consideration to merge or consolidate Public Sector Banks (PSBs). This information was provided in a written reply to an Unstarred Question in the Lok Sabha.


Image - Government clarifies there is no plan for public sector bank consolidation.

The question was raised by Members of Parliament Shri Mohite Patil Dhairyashil Rajsinh, Dr Amol Ramsing Kolhe and Shri Murari Lal Meena. The members sought details on whether the government planned further consolidation of PSBs to improve efficiency, financial stability and global competitiveness. They also asked whether banks in Maharashtra would be affected and whether any study had been conducted on the impact on customers, employees and rural banking services.

Responding on behalf of the Ministry of Finance, Minister of State for Finance Shri Pankaj Chaudhary stated that there is no proposal at present for the merger or consolidation of PSBs. The reply applies to all points raised in the question, including concerns relating to branch closures, workforce reduction and access to banking services in remote and backward regions.

The clarification comes at a time when public discussion continues around the structure and future of public sector banking in the country.