PSBs asked to rationalise overseas, domestic branches
New Delhi: The finance ministry has asked public sector banks to look at rationalising their domestic and overseas branches as part of the reform process to strengthen their financials.
The banks have been advised to pursue closure of loss making domestic and international branches as part of capital saving exercise, official sources said.
There is no point in running loss making branches and putting burden on the balance sheet, so banks should look at not only big savings but also small savings like these for improving overall efficiency, sources said.
Many banks, including State Bank of India (SBI) and Punjab National Bank (PNB), have already taken initiative. Besides, Indian Overseas Bank has rationalised a number of regional offices in the country by reducing 10 regional offices from existing 59 with an objective of optimum utilisation of resources and reduction in administrative costs. P12