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INDIANB - Indian Bank News Story

₹112.9 -1.0  -0.8%

Last Trade - 07/05/21

Sector
Financials
Size
Mid Cap
Market Cap £1.25bn
Enterprise Value £2.74bn
Revenue £1.95bn
Position in Universe 249th / 3108

BREAKINGVIEWS-Indian bank merger extravaganza will hurt first

Tue 3rd September, 2019 9:03am
(The author is a Reuters Breakingviews columnist. The opinions expressed are her own.) By Una Galani MUMBAI, Sept 3 (Reuters Breakingviews) - New Delhi wants to combine 10 state-owned lenders into four, as it cleans up a sector weighed down by bad debt. But job cuts are ruled out, putting synergies out of reach, and a recent combination of three others destroyed value. It's a costly distraction for a flailing economy. Full view will be published shortly. On Twitter https://twitter.com/ugalani CONTEXT NEWS - India on Aug. 30 said it would merge 10 state banks through four separate mergers, cutting the number of government-controlled lenders to 12, from 27 in 2017. - Finance Minister Nirmala Sitharaman said Oriental Bank of Commerce and United Bank would be merged with New Delhi-based Punjab National Bank to create India's second largest lender after State Bank of India. - Two lenders based in southern India, Canara Bank and Syndicate Bank, would be combined. Andhra Bank and Corporation Bank are to merge with Union Bank, while Indian Bank will merge with Allahabad Bank. - Sitharaman also announced the ten lenders to be granted funds in the government's latest cash infusion into state-run banks, after an earlier announcement that it would inject another 700 billion rupees ($9.8 billion) into the sector this financial year. - PNB is to be the biggest beneficiary, receiving 160 billion rupees, followed by Union Bank with 117 billion rupees. - For previous columns by the author, Reuters customers can click on GALANI/ - SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS: http://bit.ly/BVsubscribe <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ India announces series of state-run bank mergers to strengthen lenders urn:newsml:reuters.com:*:nL3N25Q4AF BREAKINGVIEWS-India gives markets two unwanted presents urn:newsml:reuters.com:*:nL3N25T09K BREAKINGVIEWS-India unlocks a $200 bln stressed debt market urn:newsml:reuters.com:*:nL3N25N0CU BREAKINGVIEWS-New Delhi’s central bank raid helps by half [nL3N25N0 urn:newsml:reuters.com:*:nL4N24N0B3 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Clara Ferreira Marques and Katrina Hamlin) ((una.galani@thomsonreuters.com; Reuters Messaging: una.galani.thomsonreuters.com@reuters.net))
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