Bank Merger Plan
No proposal on further privatisation, merger of PSU banks, says MoS Finance
This story was originally published at 16:31 IST on 1 December 2025
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--MoS Finance: No proposal currently under consideration on PSU banks merger
--CONTEXT: MoS Finance Chaudhary's response to question in Lok Sabha
--MoS Finance: No proposal currently to privatise additional PSU banks
MUMBAI – There is no proposal currently under consideration on the merger or consolidation of public sector banks, Minister of State for Finance Pankaj Chaudhary said Monday, in response to a question posed in the Lok Sabha. The government is also not considering any proposal to privatise any other public sector banks, Chaudhary said.
Meanwhile, the process for sale of government and Life Insurance Corp. of India's stake in IDBI Bank is under the stage of due diligence by the shortlisted officers following security clearance from the Ministry of Home Affairs and fit and proper evaluation by the Reserve Bank of India, Chaudhary said in the Lok Sabha.
Chaudhary's response clears the air on media reports that suggested the government is looking to undertake another round of bank consolidation. On Nov. 15, a finance ministry official had also told Informist that the finance ministry is working on a roadmap for the next round of mergers of public sector banks and an announcement is likely in Apr-May.
The minister's response also puts an end to conjectures regarding privatisation of public banks, which was announced in the Budget for 2021-22 (Apr-Mar).
The government had carried out the last round of bank mergers in 2020, when it had consolidated 10 public sector banks into four larger banks. End
Reported by Shreya Shetty
Edited by Nishant Maher
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