In a slew of key announcements made by FM Nirmala Sitharaman at a press meet in Delhi, she announced a mega bank merger. She also advised nationalised banks to improve their services and bring down the gross NPAs. On top of it, Nirmala stated government is taking all essential steps to make the nation a 5 trillion economy.
Rolling out the merger plan, Finance Minister Nirmala Sitharaman said Punjab National Bank (PNB), Oriental Bank of Commerce (OBC) and United Bank will be merged to form the second largest Public Sector bank in the country. In yet another merger, Andhra Bank, Corporation Bank and Union Bank of India will be merged.
The third merger includes Syndicate Bank and Canara Bank and it will be the third largest bank. Allahabad bank and Indian Bank will get merged to emerge as seventh largest bank.
With these mergers, 27 public sector banks will now come down to just 12. Modi government has decided to come up with this decision after the previous merger (Vijaya Bank, Dena Bank & Bank of Baroda) yielded good result. Furthermore, FM briefed that loan recoveries in FY19 reached record levels as banks collected a massive 1.21 lakh crore.
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