The Lok Sabha today passed the Banking Laws Amendment Bill, 2012 by voice vote. Replying to the debate, Finance Minister P Chidambaram said, some of the smaller banks in public sector will be merged to make two to three world size banks. He clarified that RBI will continue to be the regulatory authority for the banking sector and the Competition Commission of India will deal only with competitive practices. He said the Government is committed to strengthening the public sector banks.

Mr Chidambaram said, during this fiscal, 15 thousand crore rupees will be infused into the public sector banks. The Minister said, public sector banks are increasingly opening new branches. They are planning to recruit over 84 thousand employees this year. Referring to the non-performing assets of these banks, he said, no doubt it is a matter of concern but not alarming.