RBI deputy governor Viral Acharya says if the government cannot recapitalise PSBs due to its tight fiscal situation, then it should consider privatising some of these banks. Photo: MintNew Delhi: Reserve Bank of India (RBI) deputy governor Viral Acharya on Friday said the government should only merge strong public sector banks (PSBs) while allowing weaker banks to recuperate after adequate recapitalisation. “My own sense is let the healthy banks merge with each other if consolidation in the sector is the objective. Keep recapitalisation of the weak banks as a separate thing, recapitalise them and then merge them with other healthy banks. Or else you have to do the calculation right so that the healthy bank has so much capital that it can absorb the losses of the weak bank,” Acharya said.

Source: Mint September 08, 2017 16:30 UTC