oppn parties Breaking: Will There Be Mega-Mergers Of PSU Banks In A Couple Of Days?

Story Of The Day

Bankipur Falls: The Seat BJP Could Not Afford to Lose Has Fallen

August 10, 2026

People Are Talking About

People Are Talking About the Language of Gen Z

News Snippets

  • Supreme Court rules that functional disability should be the deciding factor in granting road accident damages and not any doctor-issued disability certificate
  • Supreme Court flagged the fact that nearly 56% of the vehicles plying in India were uninsured and asked the government to challan them
  • An Air India flight from Phuket to Delhi encountered severe turbulence and 17 passengers were admitted to hospital with injuries
  • Calcutta HC said that heavens won't fall if Vande Matram is made mandatory to sing in madrasas
  • Kolkata Municipal Corporation has sought government nod for increasing city's wards to 200+ to keep residents in each ward between 16000 to 18000
  • Government has said that partially filled online Census forms may be allowed
  • Government may allow fees on UPI payments above Rs 2000, except on transfer between two individuals
  • Brent crude falls below $80 per barrel
  • Government has increased the LIC offer for sale to Rs 31,400cr with an additional 4% on the block
  • Stock markets become nervous on Tuesday due to Gulf situation: Sensex slides 210 points and Nifty sheds 159 points ahead of RBI MPC meets today
  • Indian cricket team lands in Sri Lanka for a 2-Test series
  • A former French Navy pilot who had alleged that IAF had lost Rafales during Operation Sindoor has been held in France on spying charges
  • An ordinary zari worked living just 100km away from Kolkata was stunned to find Rs 100cr deposited in the bank account. The bank has frozen her account pending enquiry
  • Businessmen in Kolkata gets a Rs 5-crore extortion call, allegedly from the Lawrence Bishnoi gang
  • NTA floats tenders to secure offices and exam materials round-the-clock
Tarun Tejpal, former editor of Tehelka, was sentenced to 10 years in jail by Bombay HC for raping a colleague. This judgment overturns the acquittal by a Goa sessions court
oppn parties
Breaking: Will There Be Mega-Mergers Of PSU Banks In A Couple Of Days?

By Sunil Garodia

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator. Author of Cyber Scams in India, Digital Arrest, The Money Trap and The Human Hack

A freelance journalist and researcher, Pratim Ranjan Bose (@pratimbose), has tweeted that all PSU bank officers have been asked by the government to remain available for duty on Saturday, 10th August and Sunday, 11th August. This, he says, points to a major disruption in the banking sector. He says there might be a merger of PSU banks to create 4 or 5 mega entities on the lines of China. He also reports that the PSU bank chiefs are having a meeting with the Department of Financial Services under the Finance Ministry, after having met Finance Minister Nirmala Sitharaman a couple of days ago. He also reports that tests have been carried out to synchronize the core banking CBS systems of which there are two kinds in use. The SBI and some other banks use TCS developed BaNCS while the Bank of Baroda and some others use Finacle developed by Infosys.

If this report turns out to be true and a major disruption in the form of mega-mergers is carried out, the government would have made its first big move in the financial services sector. Indian PSU banks have eroded most of their capital due to bad loans. The funds needed for recapitalization are huge and unavailable. Hence, merging them to form big entities will solve many problems, provided economies of scale are availed, multiple branches are closed down and staff strength whittled down to the optimum required. These banks will be able to compete with their global peers and not shy away from global deals. If the banking system is cleaned and if banks start lending again, the economy might yet recover from the debilitating state it is in now. 

Other Stories You Make Like

Editorials

Accountability Cannot Be a Precondition to Debate

Accountability Cannot Be a Precondition to Debate

 When the State Fears Its Own Youth

When the State Fears Its Own Youth

In Depth

The Taxman's Doppelganger: How India's ITR Filing Deadline Became a Phishing Season

The Taxman's Doppelganger: How India's ITR Filing Deadline Became a Phishing Season

Editor's Pick

Kangana Ranaut's War on 'Generation Gutter'

Kangana Ranaut's War on 'Generation Gutter'
© 2014 India Commentary. All rights reserved.