The Finance Ministry is considering the approval of such 4 to 5 proposals for the merger of government banks. The ministry can approve the merger of these banks till the current financial year. The Government’s plan is to create 4 to 5 global level banks of the world from the merger of banks. From April 1, 2017, five associate banks of SBI and Indian Women Bank merged with it. With this merger, SBI has become one of the 50 largest banks in the world.

The Ministry of Finance is also considering implementing this model on other government banks so that more and more people can be reached. A senior official said, “Merger is bound to happen, but the decision will be taken only in the future, keeping in view financial strength.” If the NPA situation is correct, then another big merger can be seen in the banking sector by the end of this year.

During the financial year 2016-17, the figure of rupee one lakh crore rupees was increased to Rs 6.06 lakh crore during the April-December period. Majority of these are in Power, Steel, Road Infrastructure and Textile sector. Finance Minister Arun Jaitley has repeatedly said that India needs 5 to 6 banks globally. The decision will be taken at the right time about their merger.

An official said that whenever banks are merged, the concerned parties will be taken into consideration. These will include employees and shareholders. The government believes that doing this will be beneficial for all parties. The official said that before the merger, the concerned authorities and regulators will consider all the parties. Not only this, the proposals of merger will need approval from the Indian Competitiveness Commission. The commission will consider that the new bank formed from the merger will not have monopoly in the market.