The news on mergers and acquisitions of public sector banks has been in the air for quite some time now. The Finance Minister, the Reserve Bank of India Governor and Deputy Governor and the Finance Secretary have repeatedly announced that consolidation of public sector banks is the need of the hour.

The chairmen and managing directors of many leading public sector banks had announced their intention of acquiring banks, which will elevate the latter to global standards. The media hype over mergers has prompted millions of small investors to start investing in bank scrips, which has sent bank shares to dizzy heights in the share market. However, contrary to people's expectation, the current Budget made no mention of the modalities for mergres.

Recently staff of public sector banks went on a day's strike against mergers and acquisitions. Subsequently, statements made by some public sector banks give the impression that mergers are going to be kept in abeyance. In this scenario, the common man is completely at a loss as to what is actually going on.

Vasudev. S

Katagade (Karnataka)

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