In the wake of unearthing of a series of scams in public sector banks, a move is afoot to consolidated the overseas operations of the public sector banks (PSBs).
The plan is to consolidate at least 35 overseas operations of the PSBs. This will be done without affecting the global presence of these public sector banks in those countries.
Indicating this in a tweet, Rajiv Kumar, Secretary in the Department of Financial Services in the Ministry of Finance, said that it “is a move towards cost efficiencies and synergies in the overseas market.” About 69 overseas operations had been identified for further examination, he tweeted.
The move assumes considerable significance in the wake of the ₹12,636-crore Punjab National Bank scam and the Bank of Baroda winding up its operations in South Africa.
Presently, public sector banks have about 165 overseas branches, besides subsidiaries, joint ventures and representative offices. State Bank of India has the largest number of overseas branches (52) followed by Bank of Baroda (50) and Bank of India (29). The state-owned banks have largest number of branches in United Kingdom (32) followed by Hong Kong and UAE (13 each) and Singapore (12).
As part of the rationalisation of overseas operations, the graphic that accompanied the tweet said, “PSBs to consolidate 35 operations. 69 operations identified for possible consolidation. Includes bank branches, remittance centres and representative offices“.
If further 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.”
(With inputs from PTI)
