According to the Finance Minister Nirmala Sitharaman, 10 public sector banks are set to be merged into 4.
Indian Bank to be merged with Allahabad Bank. This merger will be India’s seventh-largest public sector bank with a business of Rs.8.08 trillion.
Punjab National Bank (PNB), Oriental Bank of Commerce (OBC), and United Bank of India to be merged, where PNB will be the anchor bank. This merger will make Punjab National Bank as India’s second-largest bank with a business of Rs.7.95 trillion.
Canara Bank and Syndicate Bank to be merged as well and this merger will make the fourth-largest bank with a business of Rs.15.2 trillion.
Also, Union Bank of India will be merged with Andhra Bank and Corporation Bank to build India’s fifth-largest public sector bank with ₹14.59 trillion in business.
’’The consolidation of public sector banks will give them scale”, the finance minister said. After this mega bank merger drive, the number of Public Sector Banks will reduce to only 12. Before 2017, the number of Public Sector Banks operating in India was 27.