The consolidation in the banking industry should involve mergers or amalgamations of only large banks, M.V.Tanksale, Chairman and Managing Director, Central Bank of India, has said.
“We should look at mega mergers and not consolidation of smaller bank to a larger one,” Tanksale told Business Line when asked about his views on consolidation moves in banking industry.
The Government is keen that atleast 2-3 world-size banks are created through consolidation process. India does not have a single bank in the listing of top 20 banks of the world. China has three in the top 20, Finance Minister Chidambaram had said recently.
Chidambaram had made a case for consolidation of banks and also creation of 2-3 world size banks.
Tanksale pointed out that Indian banks do not figure in the top fifty as well. “Consolidation is good. But we should go in for mergers of large banks and not look at weaker banks getting taken over by larger banks to create size,” Tanksale said.
Srivats.kr@thehindu.co.in