Unstarred Question No. 52, addressed to the Minister of Finance on December 1, 2025, concerned the consolidation of Public Sector Banks (PSBs). The questions raised whether the government proposed further consolidation to enhance efficiency, financial stability, and competitiveness, including details and timelines; if any PSBs in Maharashtra would be affected; if any assessment was conducted regarding the impact of mergers on customers, employees, and rural banking, especially in semi-urban and rural districts; and if consolidation might lead to workforce reduction or branch closures in economically backward regions, along with preventative measures. The Minister of State for Finance (Shri Pankaj Chaudhary) responded that presently, no proposal on the merger or consolidation of PSBs is under consideration by the Government. The question was raised by SHRI MOHITE PATIL DHAIRYASHEEL RAJSINH, DR. AMOL RAMSING KOLHE and SHRI MURARI LAL MEENA.
Key Entities Referenced
Public Sector Banks (PSBs): Banks owned by the government, which are the subject of the consolidation proposal.
Ministry of Finance: The ministry to which the question regarding consolidation of Public Sector Banks is addressed.
Maharashtra: The state in which the impact of the proposed bank consolidation is specifically questioned.
Lok Sabha: The house of parliament where the question was raised
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
UNSTARRED QUESTION NO. 52
ANSWERED ON MONDAY, DECEMBER 1, 2025/10 AGRAHAYANA, 1947 (SAKA)
Consolidation of Public Sector Banks
52. SHRI MOHITE PATIL DHAIRYASHEEL RAJSINH:
DR. AMOL RAMSING KOLHE:
SHRI MURARI LAL MEENA:
Will the Minister of FINANCE be pleased to state:
(a) whether the Government proposes to further consolidate Public Sector Banks (PSBs) in
order to enhance their operational efficiency, financial stability and global competitiveness
and if so, the details of the consolidation plan and its expected timeline;
(b) whether any Public Sector Banks operating in the State of Maharashtra are likely to be
affected by the proposed consolidation and if so, the details thereof, including the names of
the banks, their branches and the districts in which they operate;
(c) whether the Government has conducted any assessment regarding the potential impact
of the proposed bank mergers on customers, employees and rural banking services in the
said State, particularly in semi-urban and rural districts, if so, the details thereof; and
(d) whether the proposed consolidation is likely to lead to reduction in workforce or closure
of branches in economically backward or remote regions of the said State and if so, the
measures being taken to prevent adverse effects on employment and public access to
banking services?
ANSWER
THE MINISTER OF STATE FOR FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) to (d): Presently, no proposal on merger or consolidation of Public Sector Banks (PSBs)
is under consideration of the Government.
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