Finance Minister Nirmala Sitharaman.

Finance minister Nirmala Sitharaman on Saturday said there was no reason to go back on the decision to amalgamate 10 public-sector banks (PSBs) to create four larger lenders, refuting any particular reason behind the ‘delay’ in notifying the final structure of the merger, amid speculations that it might be put off beyond the intended date of April 1.

She also said the government was closely monitoring the flow of farm credit and exuded confidence that the increased agriculture loan target of Rs 15 lakh crore (up 11% year-on-year) for the next fiscal will be met. Asked about the merger of PSBs, Sitharaman said: “I don’t see any reason to go back or any reason which is particularly causing any delay for any notification… You will hear on it as it comes.” The minister, who addressed the customary post-Budget meeting of the central bank’s board, also said the PSB merger issue wasn’t discussed in the meeting.

The government had in August last year announced that Oriental Bank of Commerce and United Bank would be merged into Punjab National Bank (PNB) to create the country’s largest state-run bank after SBI, with a total business of close to Rs 18 lakh crore.

Similarly, Syndicate Bank is to be amalgamated with Canara Bank, and the broader entity will be the fourth-largest PSB. Union Bank, Andhra Bank and Corporation Bank will be merged and emerge as the fifth-largest state-run bank. Also, the amalgamation of Indian Bank and Allahabad Bank will create the 7th biggest PSB. Boards of all these PSBs have already approved the merger and a final scheme, with details of the amalgamation, will soon come before the Cabinet.

On farm loans, the minister said: “I am actually closely monitoring banks and their extension of credit facility particularly to rural areas. So I think we’ll be able to meet that (increased target).”