Bank consolidation on track: Sitharaman

New Delhi, March 26

The government on Thursday said the mega bank consolidation plan is very much on track and will take effect from April 1 despite the onslaught of coronavirus pandemic throwing the country out of gear.

The Union Cabinet earlier this month approved amalgamation of 10 public sector banks into four global size lenders, beginning next financial year.

Asked if the government is considering extending the deadline for merger of public sector banks, Finance Minister Nirmala Sitharaman said “at the moment there is nothing on that”.

Banking Secretary Debasish Panda said the merger process is very much on track and expressed hope that the banking sector would be able to meet the challenges thrown by the pandemic.

“That is very much on the track. It’s parallel activity going on. As far as fund transfers etc are concerned, necessary arrangements will be made,” Panda said.

The statement assumes significance as there has been demand from some quarters for deferring the deadline due to coronavirus outbreak.

All India Bank Officers’ Confederation (AIBOC) on Wednesday requested PM to defer mega merger exercise of banks in view of coronavirus outbreak. — PTI