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    Government asks RBI to identify banks that could be merged, says report

    Government asks RBI to identify banks that could be merged, says report

    Government asks RBI to identify banks that could be merged, says report
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    By CNBC-TV18  IST (Published)

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    Public sector banks (PSBs) roughly hold 90 percent of non-performing assets and 11 out of 21 banks are operating under the supervision of the central bank, on an emergency program, the report added.  

    In an effort to strengthen India’s banking system laden with debt, the central government has asked the Reserve Bank of India (RBI) to make a list of candidates among the 21 government controlled banks which could be merged, Bloomberg reported.
    Public sector banks (PSBs) hold about 90 percent of non-performing assets and 11 out of 21 banks are operating under the supervision of the central bank on an emergency program, the report added.
    People familiar with the development said that the finance ministry has asked the RBI to provide a time frame for the consolidation, a step aimed at creating fewer, better-capitalised banks, Bloomberg said.
    Among the top 10 global economies, India ranks second in terms of bad loan ratio, after Italy.
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