The Punjab government is preparing to amalgamate district central cooperative banks with the Punjab State Cooperative Bank to strengthen capital adequacy, improve competitiveness and cut administrative costs, reports say.
A delegation led by Finance Minister Harpal Cheema recently met RBI officials, proposing either the merger of all 20 DCCBs or 16 banks excluding four facing litigation.
Sources indicate the RBI may consider amalgamating the 16 banks that have approved voluntary merger. The move aims to create a stronger mega bank and reduce repeated state capital infusions into loss-making cooperative banks.
