India announced a series of mergers involving 10 state-owned banks on Friday, August 30, as it moves to strengthen a sector struggling under a mountain of debt and ensure stronger balance sheets to boost lending and revive economic growth.
The mergers, which cut to 12 the total number of state-owned banks from 27 in 2017, are the first since Indian Prime Minister Narendra Modi’s government won re-election in late May.
Modi’s government has vowed to clean up the banking sector and reduce the number of state-run banks.
“Twelve solidly present, well-consolidated, energised, adequately capital endowed banks will now operate,” Finance Minister Nirmala Sitharaman told a news conference. “We’re trying to build the NextGen banks.”
The government has been taking steps to boost investment in the country, and to aid sectors such as banking and auto manufacturing.
Full Content: Live Mint
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