New Delhi, March 1 (IANS) As part of the clean and responsible banking initiative, state-run banks have started rationalising their overseas operations by consolidating 35 operations and closing down non-viable branches, the government announced on Thursday.
The move, in the wake of the Rs 12,600 crore fraud on state-run Punjab National Bank (PNB) by accused diamantaire Nirav Modi, is in line with the banking sector agenda approved at public sector banks (PSBs) conclave in November last year, which requires examining all 216 PSB overseas operations.
“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,” Financial Services Secretary Rajiv Kumar said in a tweet.
“PSBs to consolidate 35 operations. 69 operations identified for possible consolidation. Includes bank branches, remittance centres and representative offices,” according to the graphic accompanying Kumar’s tweet.
“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,” it said.
Besides PNB, several other government-owned banks, including Bank of Baroda, Oriental Bank of Commerce and Corporation Bank, have reported instances of frauds.