New Delhi,  Sep 24 (KNN) As the Government proposed to merge Public Sector Banks (PSBs)  to bring down the total number of state-owned banks in the country, Micro, Small amd Medium Enterprises (MSMEs) loans will be reduced considerably, said Bankim D. Mistry, President of Bombay Small Scale Industries Association (BSSIA).

Speaking with KNN India,  he said that "By digital compulsions now there are more deposits in bank accounts that are used for corporate siphoning and not for MSME credits."

He further stated that Indians don't need so many banks and their branches.By merging if government proposes to reduce number of branches too then the overheads would be reduced and siphoning of funds as salaries and perks from banks would reduce and banks would see increase in profits."

However, he said that the move would lead to diverting the salary amounts elsewhere and not reducing interests on bank charges.

On August 30, as part of measures to revive the flagging economy, Union Finance Minister Nirmala Sitharaman had announced a series of mergers among public sector banks to create financially sound and globally competitive lenders. 

In this round of bank consolidation, United Bank of India and Oriental Bank of Commerce are to be merged with Punjab National Bank, making the amalgamated entity the second largest public sector bank. 

Allahabad Bank will be merged with Indian Bank, whereas Andhra Bank will take over Corporation Bank and Union Bank of India. Meanwhile, Canara Bank will be merged with Syndicate Bank. (KNN/ YV)

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