Finance Minister Nirmala Sitharaman today announced a big consolidation of public sector banks:
The merger of 10 public sector banks (PSBs) into four entities; which includes the amalgamation of the Oriental Bank of Commerce and the United Bank of India with Punjab National Bank.
Canara Bank and Syndicate Bank will be merged into one entity, while Union Bank of India, Andhra Bank, and Corporation Bank will be amalgamated into a single entity.
Indian Bank and Allahabad Bank Will Become one entity. She Further said that Bank of India and Central Bank Of India would remain independent.
After the Amalgamation, only 12 PSBs will be left in India from the 27 earlier. Consequent to the merger, PNB will become the second-largest PSB in India.
Here’s a list of the public sector banks after amalgamation in the descending order of their business size:
- 1. State Bank of India – Rs 52.05 Lakh Crore
- 2. PNB + OBC+ United Bank of India – Rs 17.94 lakh crore
- 3. Bank of Baroda (including Vijaya and Dena) – Rs 16.13 lakh crore
- 4. Canara Bank + Syndicate Bank – Rs 15.20 lakh crore
- 5. Union Bank + Andhra Bank + Corporation Bank – Rs 14.59 lakh crore
- 6. Bank of India – Rs 9.03 lakh crore
- 7. Indian Bank + Allahabad Bank – Rs 8.08 lakh crore
- 8. Central Bank of India – Rs 4.68 lakh crore
- 9. Indian Overseas Bank – Rs 3.75 lakh crore
- 10. UCO Bank – Rs 3.17 lakh crore
- 11. Bank of Maharashtra – Rs 2.34 lakh crore
- 12. Punjab & Sindh Bank: Rs 1.71 lakh crore
After the mergers, the country will have 12 public sector banks, including State Bank of India and Bank of Baroda. Also, the Indian Overseas Bank, Uco Bank, Bank of Maharashtra and Punjab and Sind Bank, which have a strong regional focus, will continue as separate entities.
Sitharaman had last week unveiled the first of three planned stimulus packages that included a reduction of taxes, improvement of liquidity in the banking sector, increased government spending on auto and infrastructure, and accelerated refunds of goods and services tax (GST).