Union Finance Minister Nirmala Sitharaman today announced that several public sector banks would be merged to energise and consolidate their workings as the country aims to achieve the 5 trillion dollar economy.
After the merger of banks, the number of public sector banks came down from 27 to 12.The second largest banking conglomerate will now be a united Punjab National Bank, the Oriental Bank and the United Bank with a business of Rs 17.95 lakh crore. “That is 1.5 times the business of PNB,” she said.
Sitharaman also announced that Canara Bank will merge with Syndicate Bank, Union Bank of India with Andhra Bank and Corporation Bank and the Indian Bank with Allahabad Bank.
The Finance Minister also said that recoveries have been robust this year with Rs 1,21,076 crore. Non-performing assets have also been brought down from Rs 8.65 lakh crore to Rs 7.9 lakh crore.