FM may suggest consolidation of PSU banks

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Winds from Delhi , what exactly are they saying?

 

According to sources, the Finance Minister , P. Chidambaram , is likely to address the issue of consolidation between public sector banks in this year's budget reports CNBC-TV18.

 

The buzz is that the FM has spoken in favour of consolidation for the past three years. He is, in fact, likely to announce a road map for the same in the budget. He is believed to have shortlisted six to eight banks including SBI , BOB , PNB , BOI and Canara Bank for the initiative.

 

There is also a buzz that big banks that take the initiative could be given tax SOPs post the merger and that employees may be given a second pension option and attractive VRS packages.

 

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