A 20 October 2001 Business Standard report said the government was in favour of liquidating the insolvent banks, however, the merger was initiated keeping in mind upcoming state elections in Uttar Pradesh.
It just became bigger this April after swallowing five associates and the Bharatiya Mahila Bank. Fed Data Show Discrimination.
Mullins Jr. Invalid email address. Narasimham, a former Reserve Bank of India governor, had recommended mergers to form a three-tier structure with three large banks with international presence at the top, eight to 10 national banks at tier two, and a large number of regional and local banks at the bottom. Later, the P. This was another bailout in the form of a merger.
In a move showing banking regulators' increased emphasis on ending loan discrimination, the Federal Reserve Board has, for the first time, blocked a large bank merger because of concern over possible bias against minority groups in mortgage lending. Events Guide Television Theater Video: The Federal Reserve's decision came after the the Justice Department, the Department of Housing and Urban Development and banking regulators all promised this month to step up efforts against discrimination in lending.
This was the first of the seven mergers between SBI and its associate banks. An error has occurred. The Justice Department is investigating a Shawmut subsidiary, the Shawmut Mortgage Company, for possible lending bias. View all New York Times newsletters.
This is not the first time that the idea of merging state-owned banks has gained momentum. You will receive emails containing news content , updates and promotions from The New York Times. In a decision announced late Monday, the board rejected the application by Shawmut, New England's third-largest bank-holding company.
This was the first ever merger between two nationalized banks. The overall picture of the impact of merger will become clearer in the coming quarters.
BoB gained 105 branches and a small customer base. Duwan predicted that as a result of the Federal Reserve's decision, banks would grow more careful in documenting their lending practices. Internet Not Available. Several Federal Reserve governors said that recent actions taken by Shawmut had not been enough to reassure a board majority about the company's compliance with the Equal Credit Opportunity Act and the Home Mortgage Disclosure Act. You may opt-out at any time.
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However, as the June quarter results how, bad loans have now climbed to almost one-tenth of its loan book. BoB bailed out the Uttar Pradesh-based private sector lender which had been incurring losses. A majority is needed for approval. These programs include establishing mortgages with down payments of as little as 2.