Amalgamation of PSBs helped in improving customer services, creating strong banks: MoS Commerce

The amalgamation of public sector banks has helped in improving customer services and creating strong banks, Minister of State for Commerce and Industry Som Parkash said on Wednesday.In a written reply to a question in the Lok Sabha, the minister said the objective of amalgamation of the banks was to facilitate consolidation among PSBs to create strong and competitive banks capable of achieving economies of scale and realisation of synergy benefits with wider product and service offering to customers.

The amalgamation of public sector banks has helped in improving customer services and creating strong banks, Minister of State for Commerce and Industry Som Parkash said on Wednesday.

In a written reply to a question in the Lok Sabha, the minister said the objective of amalgamation of the banks was to facilitate consolidation among PSBs to create ''strong and competitive banks'' capable of achieving economies of scale and realisation of synergy benefits with wider product and service offering to customers. ''As a result of this effort, customers of amalgamated banks received access to increased number of branches and ATMs from which they can now avail banking services. Customers have also received access to a larger bouquet of products and services,'' he said.

The amalgamation also enhanced their lending capacity for loans of a larger size and has also enabled banks to open/reorganise, controlling offices and processing centres, equipping them for better customer serving, Parkash added. He was replying to the question of whether consolidation of public sector banks has impacted positively in ease of doing business.

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