India needs 4-5 more SBI sized banks: FM

Mumbai, Sept. Sep 26 (IANS): India needs a lot more banks and a lot more large sized ones to meet the growing needs of the country needs in the path of making a smart recovery post pandemic disruptions, Finance Minister Nirmala Sitharaman said on Sunday.

Speaking at 74th Annual General Meeting of Indian Banks' Association at Mumbai, Sitharaman said there was an urgent need to scale up banking to meet the growing needs of the industry and also to ensure that all economic centres of the country are covered with at least one physical or digital banking presence.

"We need to scale up banking. The need is for at least four-five more SBI sized banks," she said, while reminding that the amalgamation exercise among public sector banks have helped in moving ahead with creation of large banks.

Having done two rounds of bank consolidation earlier, the Central government in 2019 decided to merge six disparate and weak PSBs into four in one stroke.

Accordingly, Punjab National Bank (PNB) took over Oriental Bank of Commerce and United Bank of India; Allahabad Bank became part of Indian Bank; Canara Bank subsumed Syndicate Bank; and Andhra Bank and Corporation Bank merged with Union Bank of India. Earlier, State Bank of India (SBI) with five of its associate banks while Vijaya Bank and Dena Bank were merged with Bank of Baroda.

Sitharaman lauded the efforts of the PSBs to see through that the amalgamation of banks during the pandemic period was completed without any inconvenience to customers.

She said that that in the post pandemic world, hanks would need to change their mindset and the way they conduct their businesses.

Digitisation, the Finance Minister said has changed a lot of how businesses are done and banks will now need to think futuristically and keep pace with evolving technology.

Sitharaman also asked the IBA to conduct a digitised mapping of each district of the country with regard to presence of bank branch operation and their location. This, she said, would help to plug areas of gaps with no banking presence effectively.

"Not necessary to have physical banking presence everywhere. The country's optic fibre network has covered two-third of about 7.5 lakh panchayats. This could be used to deliver banking services in unconnected areas as well," the Finance Minister said.

She also asked banks to develop models and better understanding of businesses focused on exports as country has set a $2 trillion export target by 2030.

With regard funding for the infra sector, she said that a government sector development financial institution (DFI) is coming up soon.

Sitharaman said that Indian economy is at a critical stage of a reset and banks would form the backbone for it by providing best of the financial services.



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Comment on this article

  • Vincent D'Souza, Belthangady

    Mon, Sep 27 2021

    I suggest a name "Rupee Bank of India"

    DisAgree Agree Reply Report Abuse

  • Alphy, Mumbai

    Mon, Sep 27 2021

    Nirmalaji, my suggestion is, before you open your mouth on any India's finance or economic subject, please have a discussion with eminent economist - your own husband. He is a brilliant person. I think, you should listen to him more than a unpud Feku. I am sure your husband must be laughing his guts out at your suggestions as he knows the hidden meaning of your thoughts!

    DisAgree Agree [2] Reply Report Abuse

  • Manohar, Udupi

    Sun, Sep 26 2021

    Yes. Eat more puli koddel.

    DisAgree Agree [9] Reply Report Abuse

  • anthony, mangalore

    Sun, Sep 26 2021

    India needs 4-5 more SBI sized banks so that the Govt's Crony Capitalists can buy the countrys Assets with peoples money built by our countrymen over the last seven decades.

    DisAgree Agree [10] Reply Report Abuse

  • Jossy Tauro, Mangalore

    Sun, Sep 26 2021

    Yes you are correct. We need Big size banks for Adani, Ambani, Shah and Modi groups. But for common man no money to save in bank. Everything under GST. Even you trying to save money by LIC for that GST. Paying time and withdrawing time. If you take loan pay GST. Now our curency value going down day by day. So we need to carry money in baskets to pay. But our Andhbhakts still in dream that our rupee will become equal to dollar. Modi wants his photographs everywhere.

    DisAgree [2] Agree [12] Reply Report Abuse

  • Jossey Saldanha, Thane

    Sun, Sep 26 2021

    She will sell all these banks & disappear to Mauritius ...

    DisAgree [2] Agree [11] Reply Report Abuse

  • Veer, Nagpur

    Sun, Sep 26 2021

    PM CARES Fund is the next budding bank soon to out grow SBI. But sadly it’s going to be PM Modi’s bank without audit and transparency from public and foreign money. It’s main Atmanirbhar objective is for development of Operation Kamal, Resort politics expenses, faulty EVMs tampering management, funding for unrest, crimes and chaos in the country. All Make-in-India BJP endeavours. This will certainly take india to be $-5 tr economy. Guaranteed without any doubt.

    DisAgree [1] Agree [12] Reply Report Abuse

  • Flavian, Mangalore/Kuwait

    Sun, Sep 26 2021

    within few years she looks totally exhausted with the Finance Ministry responsibilities. Operation successful but economy is laid to new low.

    DisAgree [1] Agree [6] Reply Report Abuse

  • Flavian, Mangalore/Kuwait

    Sun, Sep 26 2021

    First of all support the existing Nationalized banks to complete with Intl. standards. Ensure that Indian economy picks up and reaches the target of Modiji's projected growth of 5 Trillion US Dollars. Why you people are silent on ever increasing fuel prices, un employment rate.

    DisAgree Agree [9] Reply Report Abuse

  • N.M, mangalore

    Sun, Sep 26 2021

    So that BJP's election financiers can loot more from these banks.

    DisAgree Agree [5] Reply Report Abuse

  • El En Tea, Mangalore

    Sun, Sep 26 2021

    Amma then why did you close our Syndicate corporation Vijay Banks?

    DisAgree Agree [8] Reply Report Abuse

  • Deshbhakt, Mangalore

    Sun, Sep 26 2021

    EXACTLY !!! That is what I too was going to ask.

    DisAgree Agree [2] Reply Report Abuse

  • Vincent D'Souza, Belthangady

    Sun, Sep 26 2021

    Name one more bank - "Rupee Bank of India"

    DisAgree Agree [9] Reply Report Abuse

  • arm, Mangalore

    Sun, Sep 26 2021

    Then India needs more Mallya, Nirav Modi and Chouksi type of people with Pradhan Sevak on top of them.

    DisAgree [1] Agree [17] Reply Report Abuse

  • Mangalurian, Mangaluru

    Sun, Sep 26 2021

    Sithamma is taking the FIVE TRILLION DOLLARS very seriously. Imagine if each dollar buys Rs 200, we need lots of additional banks to keep the money of the Gujju super-businessmen. One SBI-sized bank may not be enough for the man who gave his plane for the election campaigns of the Santa Claus in 2013-14. The migrant labourers and the middle class people won't have anything to bank, but that is a very minor matter.

    DisAgree Agree [17] Reply Report Abuse

  • Manav, Mangalore

    Sun, Sep 26 2021

    Looking at the photos, the FM seems to be finding it difficult to manage her own hair then how can we expect her to manage the economy ?

    DisAgree Agree [22] Reply Report Abuse

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