Merger of Banks announced; PNB, OBC & United Bank to be merged into single entity – FM Sitharaman
India will now have 12 Public Sector Banks from 27 Public Sector Banks in 2017. Finance Minister Nirmala Sitharaman announces the merger of Punjab National Bank, Oriental Bank of Commerce, United Bank, Indian Bank, Allahabad Bank, Canara Bank, Syndicate Bank, Union Bank, Andhra Bank and Corporation Bank.
: Finance Minister Nirmala Sitharaman on August 30, 2019 addressed a press conference, announcing major initiatives and steps to accelerate the economic growth of India. The Minister announced the merger of several banks under the Bank Consolidation plan. The banks which are being merged together are Punjab National Bank, Oriental Bank of Commerce, United Bank of India, Indian Bank, Allahabad Bank, Canara Bank, Syndicate Bank, Union Bank of India, Andhra Bank and Corporation Bank.
Till now, there were 18 Public Sector Banks. After today’s announcement, India will be left with only 12 Public Sector Banks. There were 27 public sector banks in 2017. Only six banks showcased profitability in the 4th Quarter of 2018-19. This is not the first time that the Government is merging the banks together. Earlier, under the Banks Consolidation plan itself, the Government had merged all the entities of State Bank of India into one and merged Bank of Baroda, Dena Bank and Vijaya Bank as one single entity. The merger of these banks is aimed at making India a USD 5 trillion economy.