Mr Amit Gupra, Co-Founder and CEO TradingBells
In another round of economy booster announcements, the FM announced the merger of 10 Public Sector Banks into 4, bringing the total count of PSBs in the country to just 12. The announcement comes a week after the FM announced a slew of measures to uplift the market sentiments and give a boost to the economy to revive it from a 5-year low.
As quoted by late Shri Arun Jaitley, "In order to make banks sound by creating healthy large banks which can be globally competitive, the government needs to follow the policy of amalgamation". These amalgamation announcements today are coming by the FM as a tribute to Arun Jaitley. Additionally, the FM announced a further capital infusion of Rs. 55,250 crore to these amalgamated banks to support credit growth and regulatory compliance.
The mergers will give a wider reach to the banks and can give good business opportunities by way of higher loan disbursements. All of this should help the businesses grow and make industrialization growth strong in the country. Due to the 'Make in India', we should get more strong and self sufficient following these measures announced today.