New Delhi : The government is looking at consolidation among the 27 state-owned baks to create 4-5 larged sized lenders, a process that will begin with the merger of SBI and its associates in the current fiscal.
It is also looking at its stake in IDBI Bank coming down from 80 per cent to 60 per cent if stake dilution happen via QIP, a finance ministery official said.
"Finance Ministry's view is that there should be 4-5 lenders after consolidation of PSU banks. To begin with, SBI and its associate banks are to be merged, while decision on other banks will be taken in due course," the official added.
The official said that merger of SBI with associate banks is likely to happen towards the end of this fiscal. Last week, the Cabinet had approved the merger between SBI and its associate banks.
"Trade unions will have to be taken on board before the consolidation exercise starts," the official said.
State Bank of India, Punjab National Bank, Canara Bank and Bank of India are among the large state-owned banks in the country.