Current Affairs Economy & Banking

Category : Economy & Banking

Union Finance Minister Nirmala Sitharaman has announced a big consolidation of public sector banks. Under the scheme of amalgamation, 10 public sector banks are to be merged into four banks. After the amalgamation, the total number of Public Sector Banks in the country will come down to 12 from 27 banks in 2017

The amalgamation of banks will be in the following manner: Punjab National Bank, Oriental Bank of Commerce and United Bank of India to be merged into one single bank, with business of Rs 17.95 lakh crore to make India’s 2nd largest bank. Canara Bank and Syndicate Bank are to be merged to become the 4th largest public sector bank with business of Rs 15.2 lakh crore. Union Bank of India, Andhra Bank and Corporation Bank are to be merged to become the 5th largest public sector bank with business of Rs 14.6 lakh crore. Indian Bank will be merged with Allahabad Bank to become the 7th largest public sector bank with business of Rs 8.08 lakh crore.

The government has also announced capital infusion of over Rs 55,000 crore into public sector banks: PNB (Rs 16,000 crore), Union Bank of India (Rs 11,700 crore), Bank of Baroda (Rs 7000 crore), Indian Bank (Rs 2500 crore), Indian Overseas Bank (Rs 3800 crore), Central Bank (Rs 3300 crore), UCO Bank (Rs 2100 crore), United Bank (Rs 1600 crore) and Punjab and Sind Bank (Rs 750 crore).

Source: The Live mint