India to merge 35 overseas branches of state banks after $2b fraud case

Nearly 70 more banks are under review.

Reuters reports that India’s government will consolidate 35 overseas branches of state-run banks with another 69 under review amidst a high-value scandal that eruped in the country’s second largest state bank, according to a tweet issued by financial services secretary Rajeev Kumar. 

The government is also considering shutting down all non-viable offshore operations of state banks as a cost-cutting measure, Kumar added as the government also plans to merge equity stakes in joint ventures with multiple state-run bank partners. 

This comes as the banking system came under scrutiny after a $2b fraud in Punjab National Bank with famed Hollywood jeweler Nirav Modi as the leading suspect. 

Here’s more from Reuters.