The government on Friday said that it would merge 10 public sector banks into four, bringing down the number of PSU banks to 12 from 21.
The PSU bank mergers would help in better management of capital, said Finance Minister Nirmala Sitharaman while announcing the proposal as a part of a package of ‘reforms’ for the economy.
She also announced a series of governance of government banks in the hope that the capital infused by the government into the lenders would result in stronger banks.
According to the plan:
•Punjab National Bank will take over Oriental Bank of Commerce and United Bank
• Canara Bank will take over Syndicate Bank
• Union Bank of India will take over Andhra Bank and Corporation Bank
• Indian Bank will be merged with Allahabad Bank