New Delhi, March 23 – The government is not currently considering any proposals regarding the merger or consolidation of public sector banks (PSBs), according to Finance Minister Pankaj Chaudhary.
Chaudhary stated in a written reply to the Lok Sabha that the amalgamation of PSBs has led to the creation of stronger, more competitive banks with economies of scale and scope, while also enabling greater synergies.
He added that this has resulted in a significant increase in customer base, market reach, and operational efficiency for the amalgamated banks, thanks to their enhanced financial capacity, better access to low-cost deposits, and increased ability to support larger lending.
Furthermore, the amalgamation has also facilitated increased operational scope and improved cost efficiency through the adoption of best practices and digitization.
Chaudhary noted that the amalgamation of PSBs has contributed to improving the operational efficiency and financial soundness of banks through streamlined operations and reduced costs, leading to increased consolidated business for these banks.
Citing data from the Reserve Bank of India (RBI), he stated that the consolidated business of Bank of Baroda, which merged with Vijaya Bank and Dena Bank on April 1, 2019, grew from ₹16.1 lakh crore in March 2019 to ₹27.0 lakh crore in March 2025.
Similarly, the consolidated business of Punjab National Bank, which merged with Oriental Bank of Commerce and United Bank of India on April 1, 2020, grew from ₹18.3 lakh crore in March 2020 to ₹26.8 lakh crore in March 2025.
He also provided data for Union Bank of India (merged with Andhra Bank and Corporation Bank on April 1, 2020), growing from ₹15.3 lakh crore in March 2020 to ₹22.9 lakh crore in March 2025, and Canara Bank (merged with Syndicate Bank on April 1, 2020), expanding from ₹15.7 lakh crore in March 2020 to ₹25.3 lakh crore in March 2025.
Finally, he stated that the consolidated business of Indian Bank (merged with Allahabad Bank on April 1, 2020) increased from ₹8.6 lakh crore in March 2020 to ₹13.3 lakh crore in March 2025.
In response to another question, Chaudhary stated that the EASE Reform Agenda is finalized annually at the start of each financial year (FY), under the guidance of the EASE Steering Committee of member PSBs, under the aegis of the Indian Banks’ Association (IBA).
He added that the EASE Steering Committee objectively assesses and reviews the agenda quarterly, and that the EASE 9.0 Reforms Agenda for FY2026-27 was launched in February 2026, with a vision of building globally competitive PSBs for Viksit Bharat by 2047.
He explained that the EASE 9.0 Reforms Agenda is built upon four themes of the EASERise framework: Risk & Resilience, Innovation, Socio-economic Impact, and Excellence.
This agenda focuses on strengthening the long-term capabilities of PSBs, with a focus on institutionalizing customer service culture, AI-enabled workflows, strengthening the operational risk framework, modernizing IT systems, lending to emerging sectors, sustainable finance, and employee well-being.
Furthermore, the IBA has informed that the metrics for the EASE 9.0 Reforms Agenda are under formulation and will be rolled out to PSBs by April 2026.
In response to another question, Chaudhary stated that the value of the rupee is market-determined, with no specific target or level.
He explained that the Reserve Bank of India (RBI) regularly monitors the foreign exchange market and intervenes in situations of excess volatility. He added that various domestic and global factors influence the exchange rate of the rupee, such as the movement of the Dollar Index, capital flows, interest rates, crude prices, and the current account deficit.
During the current financial year 2025-26, the depreciation of the rupee has been influenced by the increase in the trade deficit, coupled with relatively weak support from the capital account.
Additionally, he stated, increasing crude oil prices amid the ongoing conflict in West Asia have added further pressure on the rupee.
During 2024 and 2025, the RBI's intervention in the foreign exchange market amounted to ₹64,064 crore in two calendar years.
He stated that the RBI sold ₹12,350 crore and ₹51,714 crore during 2024 and 2025, respectively.