India needs more big banks the size of largest lender SBI: Sitharn
MUMBAI: India needs at least four or five banks of a size matching its biggest lender, the State Bank of India, to meet the growing needs of its economy, Finance Minister Nirm Sitharn said on Sunday.
The rationale for merging banks even before the pandemic was to scale up to meet the new, changing and growing requirements of the economy, Sitharn told an annual meeting of the Indian Banks' Association.
"The economy is shifting to a different plane altogether," Sitharn said. "Even before the pandemic the driving force for lgtion (of banks) was that India needs a lot more banks, but a lot more big banks."
She added, "Now all the more reason we would need four or five more SBIs in the country."
She did not give details. But the go nment has been consolidating state-run banks to combat the pandemic slowdown and create bigger and stronger banks while it also looks to sell its stakes in, and privatise, at least two state-run banks.
Last month, State Bank of India reported record first-quarter profit and bet on economic activity picking up to contain a spike in bad loans, sending shares of the state-run bank to an all-time high.
Yes sell the SBI and create a new Big Banks...
Stop privatization of public banks. Create more branches in rural n tier 3 cities.
Big Banks for the rich, by the rich. A common man can be sufficed with grameen banks.
It is simple. Sell off non performing banks to private sector.
First Sitharn must control Bank frauds than talk about Big Banks.
From whose pocket the NPAs will be paid. Looting common man more than british rule.
Now soon u will see one either from Adani or Ambani. And this will be done at the expense of current small banks
She talking after selling all PSUs?
India needs a capable FM first. Rest all will come automatically.
Mam. For heaven sake don’t create one more SBI. I have account with IDBI & Union Bank which are far superior in service. 6 times I visited SBI Antop Hill branch 7 times ti activate Internet Banking. Not happened till date. Great bank with don’t care attitude towards customers
India needs a better Finance Minister.
She has become old and senile our economy is in the hands of an FM who has no past experience our worst present economic state of india speaks volumes about the failures she has brought about in each and every law she has introduced india is worst than African countries in terms of poverty and joblessness
We need to change according to the need of the market. The banking industry should be dyanmic, autonomous, professioanl, honest and answerable.
Most useless FM know nothing. She prove good for nothing in all and as well bad for everything in all fronts.
Sell all banks to amba and adaa... they all automatically become big...
Most banks got problems due to co ption in internal management
Given the pandemic she did an exemplary job.
First fix SBI
SBI is inefficient.. Improve the efficiency of the newly merged banks, give equal opportunities / weight-age to all instead of pampering SBI with preferential dealings..
Let us export our land to America and become Americans..
If you want people to put money in the bank then first put loan defrauders in the jail. Then gaurantee each depositor atleast 1 crore per account. Get rid of RBI governor and Finance Minister who have no qualifications as to how to regulate banks. Then privatise all Banks. That will solve the priblem. Nobody will put money in the bank without proper gaurantee of safety and liquidity of their deposits.
Need More Land
Bharat is expanding fast to become the largest economy in the world.