|
BSBL-PSU
bank merger likely
Our Banking Bureau
19 October 2001
 Mumbai:
The Central government is mulling over the idea of merging
Benares State Bank Ltd (BSBL) with a strong and healthy PSU bank.
The Centre appears to be
unwilling to let the bank be liquidated in view of the forthcoming
elections in Uttar Pradesh, where the bank is headquartered. The
Maharaja of Benares, the main promoter of the bank, has also met
RBI officials to discuss the likely revival of the bank.
On 25 September, the RBI
had issued a directive, banning the withrawal of deposits in
excess of Rs 1,000 from BSBL. The directive was later partially
modified and depositors were permitted to withdraw up to Rs 2,500
from their accounts.
In case a merger with a
PSU bank takes place, this will  be
the fourth instance where an old private sector bank from Uttar
Pradesh is being merged with a PSU bank. Earlier, Hindustan
Commercial Bank was merged with Punjab National Bank, Kashinath
State Bank Ltd with the State Bank of India and Bareilly
Corporation Bank with Bank of
Baroda.
List
of general reports on banks
|
