PSU Merger Plan

Public sector undertakings (PSUs) in non-strategic sectors shall be considered for privatisation, or they shall be closed, said Minister of State Finance Bhagwat Karat in Rajya Sabha.

At the end of December 2019, the total business of Allahabad Bank was close to Rs 3.94 trillion, while that of Indian Bank was close to Rs 4.5 trillion

"The insurance companies shall make suitable arrangements with the acquiring banks to this effect," said the the Insurance Regulatory and Development Authority of India (Irdai)

Merging one public sector undertaking with another, transferring stake from one pocket to a different one is a sort of game played by all successive governments

While announcing the merger, finance minister Nirmala Sitharaman said plans is to create fewer but stronger global- sized banks for building a $ 5 trillion economy

Investors need to understand the share swap ratio and the other details of the proposed merger, analysts caution

The 'Alternative Mechanism' (AM) headed by Finance Minister Arun Jaitley had decided to merge three banks with a view to create a global size lender, which will be stronger and sustainable

As per the requirement, the scheme of amalgamation will be placed before Parliament, which is in session till January 8

Six firms, including Ernst & Young LLP and Deloitte Touche Tohmatsu, are in the race for advising the Finance Ministry on two merger and acquisition (M&A) deals. The four other entities which have bid for advising on the deals are ICICI Securities, IDBI Capital Market and Securities, SBI Capital Markets and RBSA Capital Advisor LLP. These firms would be making their presentation before the Department of Investment and Public Asset Management on November 26, as per a notice on the DIPAM website. DIPAM had last month floated a Request for Proposal (RFP) to engage one advisor from consulting firms/ investment bankers/ merchant bankers for assisting it in the process of two M&As in the energy sector. The selected advisor would assist the government on modalities of disinvestment and the timing; and prepare business valuation of companies, as well as suggest measures to fetch optimum value. The names of the CPSEs selected for M&A would be decided later. Once the proposal ...

The government will discuss a road map that banks are supposed to prepare to strengthen their risk mechanism systems

The other members of the AM panel are Piyush Goyal and Nirmala Sitharaman