FM announces merger of public sector banks: PNB, OBC and United Bank to become second largest after SBI

Finance Minister Nirmala Sitharaman on Friday announced the merger of a number of public sector banks (PSB) to revive and revitalize the banking sector with the aim of achieving the goal of $ 5 trillion in the economy. The number of public service organizations will increase from 27 to 2017 in 2012, following the decision to create world-class banks for state-owned lenders.

The last development comes a week after the government announced a series of measures to revive the growth of the Indian economy.

In what is one of the biggest mergers since the integration of SBI with five associated banks, Sitharamam announced the merger of the Punjab National Bank (PNB), the Oriental Bank of Commerce (OBC) and the United Bank of India with a company of 17.95 Rupees lakh crore and a network of 11,437 branches, making it the second largest PSB in the country.

Sitharaman also announced the consolidation of Canara Bank with Syndicate Bank to form the third largest PSB with a company of Rs 15,20 lakh crore. the Union Bank merger with Andhra Bank and Corporation Bank will be the fourth largest public distribution network with 9,609 branches. The government also announced the merger of Indian bank with Allahabad bank with a company of Rs 8,08 lakh crore, 1.9 times of the Indian bank and covering the south, north and east sectors.

Meanwhile, the Bank of India and the Central Bank of India will remain central banks with a national presence. To strengthen the regional presence, Sitharaman announced that Indian Overseas Bank will continue its operations in the south, UCO Bank will continue its operations in the east of the country and the banks of Punjab and Sindh will continue their activities with an activity of 1.71 lakh crore in the north.

Lily: Here is a complete list of bank mergers announced by FM

the Indian economy, which is currently at $ 2.65 billion, is facing a downward spiral with the government infusing new capital into the banking system. "We give this bank a sufficient capital reserve to operate without worry. Sufficient instructions have been given at the branch level to ensure credit availability, liquidity will not be affected, "said Sitharaman.

Announcing a positive growth of the banking system, the Minister of Finance pointed out that the gross bad debts of the public sector banks were reduced to 7.9 million rupees lakh on 8.65 million of the crown at the end of December 2018.

Sitharaman, speaking at the press conference, said that a partial credit guarantee scheme for the NBFC had been in place since the last announcement and that a cash support of Rs 3,300 had was granted, while 30,000 crore were being processed. In announcing measures to strengthen the banking system, the Minister of Finance said: "We need to lay a solid foundation for the financial sector by strengthening the banks and providing them with a good governance module. In recent years, we have ensured that a number of banking reforms are undertaken. "