Finance Minister Arun Jaitley has said that consolidation in the country’s banking industry should increase, i.e. the number of banks should be reduced. He said that the country needs less but powerful banks so that the profits gained from large scale can be availed. He dismissed concerns about the impact of the fiscal year announced by the Welfare Programs announced in the Interim Budget on February 1.
After the ration of addressing the RBI board after the budget, he told the reporters that all such schemes have a cost, but in the last five years revenue growth has also been very high. RBI governor Das said that he will meet the heads of government and private banks this week and will discuss the impact of the reduction in interest rates to the people.
He said that at one time, especially in the financial year 2013 and financial year 2014, the government was facing difficulty in arranging Rs 28,000 crore for the Mahatma Gandhi National Rural Employment Guarantee Act Program. He said, “It is possible to arrange Rs.60000 crores today.” The government has announced cash transfers of Rs.6000 per annum for small and marginal farmers, which will cost Rs.20000 crores this year and Rs. 75000 crores next year. Jaitley said, “My experience has been that when we announce plans and set a target, then arrangements are made for them in the budget, which is also reflected in the revenue growth,” Jaitley said.
Jaitley said that the country needs big banks. He said, “Our experience of SBI Merger has been. Now the second merger is taking place. “He referred to the merger of Dena Bank and Vijaya Bank’s Bank of Baroda. In the year 2017, five Indian Associate Banks and Indian Women Bank merged with SBI. Jaitley said, “India needs fewer and bigger banks, which are strong. From borrowing prices to optimum utilization, in every case, the banking sector will benefit from large size. ‘