Ten Public Sector Banks to be Amalgamated into Four Banks: Finance Minister

Finance Minister Nirmala Sitharaman has announced the consolidation of ten public sector banks into four banks. The mega merger would boost the economy and investment confidence.

Punjab National Bank (PNB), Oriental Bank of Commerce (OBC) and United Bank shall be merged as one where PNB will be the anchor bank. This would create the second-largest banking network in the country with a business of Rs. 18 lakh crore.

Union Bank of India, Andhra Bank and Corporate Bank have been merged. Consolidated Canara Bank and Syndicate Bank to be 4th largest public sector bank with Rs. 15.2 lakh crore business. Union Bank of India, Andhra Bank and Corporate Bank shall be merged to be the 5th largest public sector banks. Indian Bank has been merged with Allahabad Bank to make the country’s seventh largest Public Sector Bank.

Eight Public Sector Undertaking (PSU) banks have so far launched repo rate-linked loans. Loan tracking mechanism in PSU banks is being improved for the benefit of customers.