Union government asks PSBs to consolidate overseas operations
New Delhi, Mar 2 (IBNS): The Union government has asked Public Sector Banks (PSBs) to consolidate 35 overseas operations, according to media reports.
Rajeev Kumar, Secretary in the Department of Financial Services, under the Union Finance Ministry, tweeted on Thursday, "#ResponsibleBanking; PSBs to consolidate 35 overseas operations without affecting international presence of PSBs in these countries; 69 ops identified for further examination. Move towards cost efficiencies and synergies in overseas mkt."
The day before, Rajeev Kumar had tweeted, "PSB MDs directed to detect bank frauds & consequential wilful default in time & refer cases to CBI. To examine all NPA accounts > Rs. 50Cr for possible fraud. Involve ED/DRI for PMLA/FEMA/EXIM violations if any."
The consolidation of operations assumes considerable significance in the wake of the Rs 12,636-crore Punjab National Bank scam and the Bank of Baroda winding up its operations in South Africa, reported The Hindu.
The tweet from Thursday also contained a graphic that said: “All 216 PSB operations to be examined. Non-viable operations in overseas market to be closed for cost efficiency and synergy. Operations in some geography to be consolidated. Consolidate equity stake in joint ventures having multiple PSB partners.”
Image: RajeevKumar/Twitter
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