Union Finance Minister Nirmala Sitharaman will be addressing a press conference at 4pm. The presser comes just before the Central Statistics Office will release the Gross Domestic Product (GDP) growth numbers. Sitharaman last week had announced a raft of measures, including rollback of enhanced super-rich tax on foreign and domestic equity investors, exemption of startups from 'angel tax', a package to address distress in the auto sector and upfront infusion of Rs 70,000 crore to public sector banks, in efforts to boost economic growth from a five-year low.
Earlier, RBI said in a statement had said that the board decided to transfer a sum of Rs 1,76,051 crore to the Government of India comprising Rs 1,23,414 crore of surplus for the year 2018-19 and Rs 52,637 crore of excess provisions identified as per the revised Economic Capital Framework (ECF).
Here are all the LIVE updates:
5.30 pm: List of banks that will be merged:
Punjab National Bank, Oriental Bank of Commerce and United Bank
Canara Bank and Syndicate Bank
Union Bank of India, Andhra Bank and Corporation Bank
Indian Bank and Allahabad bank
5.28 pm: I am not going to comment on remarks from Congress because if bank frauds became an assumption for the Indian citizen it is because of the Congress party. Many of these fugitives we are trying to get back were encouraged during their time, says Nirmala Sitharaman.
5.20 pm: Finance Secretary Rajeev Kumar: In amalgamation process, no.of banks have been brought down to 12 from 27. There has been no retrenchment so far, there is no chance of retrenchment. The benefits of employment & HR will improve, with amalgamation the best combination will be taken up.
5.15 pm: No jobs to be lost due to bank mergers: Nirmala Sitharaman
5.10 pm: We shall continue with 2 banks which will have national presence - Bank of India with Rs 9.3 Lakh Crores of business size and Central Bank with Rs 4.68 Lakh Crores of business size: Nirmala Sitharaman
5.10 pm: Rs 55,250 crore upfront capital for credit growth and regulatory compliance to support economy. (Source: Twitter@PIB India)
5.05 pm: Staff should be dedicated at the branch level to make sure last Friday’s announcements are implemented and this consolidation is smoothly applied, says says Nirmala Sitharaman.
5 pm: Gains visible from PSB Reforms: 14 PSBs in profit in Q1FY20, GNPAs down by 1.06 lakh crore, record recovery and highest PCR in 7 years. (Source: Twitter@PIB India)
4.48 pm: Banks to recruit chief risk officers from the market: FM Nirmala Sitharaman
4.55 pm: Consolidated Indian and Allahabad Banks to be 7th largest PSB with Rs 8.08 lakh crore business. Strong scale benefits to both with business doubling. High CASA and lending capacity combined in consolidated bank.
4.52 pm: Boards empowered, Board committees strengthened, non-official directors enabled to play effective role, leadership pipeline initiated, says Nirmala Sitharaman.
4.50 pm: Unlocking potential through consolidation, big banks with enhanced capacity to increase credit and bigger risk appetite, with national presence and global reach.
4.47 pm: Government will strengthen Board committee system, says FM Nirmala Sitharaman.
4.45 pm: No retrenchment has taken place post merger of Bank of Baroda, Dena Bank and Vijaya Bank; staff has been redeployed and best practices in each bank have been replicated in others: Union Minister Nirmala Sitharaman.
4.44 pm: The total of number of PSBs in the country have come down to 12 from 27 in 2017.
4.42 pm: Niramala Sitharaman announces mega mergers of various government banks. Click HERE to read complete story.
4.42 pm: 88 percent of PSB business will be with the newly merged banks.
4.40 pm: Indian Bank to be merged with Alahabad Bank. To become seventh largest bank in India, says Nirmala Sitharaman.
4.40 pm: Union Bank of India, Andhra Bank and Corporation Bank to merge with business of Rs 14.59 lakh crore: FM Nirmala Sitharaman
4.37 pm: Canara bank and Syndicate Bank are to be merged: FM Nirmala Sitharaman
4.35 pm: PNB, Oriental Bank of Commerce and United Bank to merge to form the second largest PSB: Nirmala Sitharaman
4.30 pm: 4 NBFCs have found their liquidity solutions through PSBs since last Friday with more in pipeline Indian Economy is $2.6 trillion of which $1.9 trillion is credit: Union Minister Nirmala Sitharaman
4.28 pm: Specialised agencies have been set up who are monitoring every loan which is over Rs 250 crores.
4.26 pm: 18 PSBs of total , 6 showed profitability in Q4FY19. Now 14 are profitable in Q1FY19, says Nirmala Sitharaman
4.25 pm: Several new processes have been implented in the banking sector to avoid frauds: Nirmala Sitharaman
4.25 pm: "We need to lay a strong foundation for financial sector. We need to bring about banking reforms, as we have done in the previous years," says Nirmala Sitharaman.
4.23 pm: Early signal warning reading being implemented for every loan which is over Rs 250 crore, says Nirmala Sitharaman.
LIVE: Press Conference by Union Finance and Corporate Affairs Minister @nsitharaman— PIB India (@PIB_India) August 30, 2019
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4.20 pm: 4 NBFCs are reaching out to public sector banks to provide the liquidity after my my previous announcement, says Nirmala Sitharaman.
4.15 pm: Nirmala Sitharaman to announce measures for real estate.
4.15 pm: The banking sector will be the main focus of today's press conferrence, says Nirmala Sitharaman
4.10 pm: Nirmala Sitharaman arreives for the press conference.
4.10 pm: Finance Minister Nirmala Sitharaman had made several announcements to boost the Indian economy including enhanced surcharge on long-term/short-term capital gains arising from transfer of equity shares/units for foreign and domestic investors and angle tax on startups.
She also announced that the CSR violations wouldn't be treated as criminal offence. GST regime will be simplified further and all pending GST refunds will now be released within 30 days and future refunds will be paid within 60 days.