Article: United States : Centre eyes RRB mergers to increase profitability.

Byline: babalu03

The finance ministry, it is learnt, is working on a plan to ask sponsor banks with small regional rural banks (RRBs) in their fold to exit their respective equity holdings in those RRBs. The equity in the respective RRBs would, in turn, be placed with other sponsor banks, depending on their proximity to RRBs in question.

While there was no official confirmation to this development from finmin officials as yet, a source close to the ministry said the move appears to be a prelude to the second-phase of RRB amalgamation.

Finance minister Pranab Mukherjee has recently indicated that he is considering such a move. He said sponsor ...

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