(a) whether any proposal is under consideration of the Government to merge one
nationalised bank with the other nationalised bank;
(b) if so, the details thereof;
(c) the time by when the merger of these banks will be made effective;
(d) the details of any such merger that has taken place during the last three years; and
(e) the manner in which the Government proposes to protect the interests of the
stakeholders and employees of such banks?
FINANCE MINISTER (SHRI P. CHIDAMBARAM)
(a) to (e) : A statement is laid on the Table of the House.
STATEMENT FOR LOK SAB HA STARRED QUESTION NO.264
FOR 31st AUGUST, 2007 REGARDING MERGER OF NATIONALISED BANKS
TABLED BY SHRI SUBRATA BOSE
(a) to (c) & (e): Committee on Banking Sector Reforms (Narasimham Committee) had
recommended consolidation in the banking sector as part of wider financial sector
reforms. Government is of the view that any proposal for consolidation, by way of
merger etc., of one nationalised bank with another nationalised bank, should emanate
from the concerned banks with Government playing a supportive role as the common
shareholder. While supporting any merger proposal, Government will ensure that the
interests of the stakeholders and employees of merging banks are adequately protected.
On 25.08.2007, the SBI Board has taken a unanimous decision to merge its wholly owned
subsidiary, the State Bank of Saurashtra with itself. The State Bank of Saurashtra
Board, meeting on the same day, has also taken a unanimous decision to merge the Bank
with the State Bank of India.
(d): No nationalised bank has merged with another nationalised bank during the last
three years.