Lok Sabha Committee to Hold Meeting With Four Government-Owned Banks, No Merger Being Considered -Report

A group of MPs will hold discussions with four government-owned banks early next year under banking laws, which, among other things, govern mergers and acquisitions, according to a government document.

According to an official document, the Committee on Subordinate Legislation will have “informal discussions” with the Reserve Bank of India (RBI) over the law governing its functioning and regulatory supervision, besides separate deliberations with five insurance companies over the country”s insurance laws.

Informal discussions will be held with representatives of UCO Bank and Union Bank of India on January 2, 2024, and between the Bank of Maharashtra and the Bank of India on January 6, 2024, in the western cities of Mumbai and Goa, according to the document issued on Nov. 16.

The mission held by the committee also includes conducting meetings with the Insurance Regulatory and Development Authority of India, Life Insurance Corporation, SBI Life Insurance, National Insurance Co., Oriental Insurance, and the New India Assurance Co., which will be held on January 2.

However, no proposal to merge the public sector banks is being considered by the government, and the discussions were part of a “routine exercise,” Reuters reported, quoting the sources. The Union Finance Ministry has not responded to the query.

The Indian government is contemplating the merger of 10 state-owned banks into four lenders, given that government-owned banks still account for over 60% of India”s banking system in terms of assets and deposits.