Friday, July 1 2005 19:11 Hrs (IST) - World Time -

Bangalore: Union Finance Minister P Chidambaram today (July 1, 2005) indicated the Government's intention to merge some of the big public sector banks to make them giant-sized ones competing at global level.

Speaking after flagging off the centenary celebrations of Canara Bank in Bangalore, he said competition, consolidation and convergence would be the three key drivers for the banking industry.

"...Consolidation means banks must get together and become bigger banks, smaller banks must be taken over by bigger banks and among the big banks, there must be some merger so that India gets giant sized banks", he said.

Chidambaram lamented that India does not have a bank that's among the top ten or 20 banks globally. India's biggest bank State Bank of India is ranked 82 in the world, he pointed out.

"When consolidation takes place.... when some of the banks become giant-sized banks, global banks...you will find....", the Minister said.

Earlier, Chidambaram asserted that public sector banks will always remain in the public sector.

"We have no intention to privatise public sector banks", he said. "But we want public sector banks to compete with private sector banks and foreign banks", he stressed.

Public sector banks would get fullest support from Government of India, which would ensure their growth and that it grows faster. "Banks must expand, raise more capital and lend more", he added.