Finance Minister Nirmala Sitharaman on Friday announced a slew of measures to boost the economy. The finance minister announced the merger of Punjab National Bank, Oriental Bank of Commerce and United Bank.
She also announced three other PSU bank amalgamation plans: Canara Bank and Syndicate Bank; Union Bank of India, Andhra Bank and Corporation Bank, and Indian bank with Allahabad Bank.
Key takeaways:
- The FM announced mega-merger of 10 state-run banks into 4 banks
- PNB, OBC and United Bank to be merged
- Canara Bank, Syndicate Bank to be merged
- Union Bank, Andhra Bank and Corporation Bank to be merged
- Indian bank to be merged with Allahabad Bank.
- FM Sitharaman: We shall continue with 2 banks which will have national presence – Bank of India with Rs 9.3 Lakh Crores of business size and Central Bank with Rs 4.68 Lakh Crores of business size.
- FM Sitharaman: Indian Bank with (merge) Allahabad Bank, they will be the seventh largest Public Sector Bank with business of Rs 8.08 lakh crores.
- FM Sitharaman: After today’s announcement (merger of banks) post-consolidation, India will now have 12 Public Sector Banks from 27 Public Sector Banks.
She said that gross non-performing assets (NPAs) have come down from 8.65 lakh crores to 7.90 lakh crores.