......Talks of merging smaller public sector banks with their larger peers have been doing rounds for sometime, as asset quality issues and heavy regulatory regime have impacted ability of small banks to raise funds to meet Basel III norms. The government is also considering the proposal to set up a holding company for public sector banks to help them raise funds by leveraging their combined assets, Sandhu said. " We have to examine it, whether that is the right way to go. That is under consideration," he said................
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