Suvbharat Times, 30/08- The government on Friday announced the biggest overhaul in the public sector space with finance minister Nirmala Sitharaman unveiling a merge plan to merge 10 state-run lenders into 4 entities. She announced the contours of a Rs 55,000-crore recapitalization plan for the entities that are to be merged as well as the 6 Banks which are not part of the consolidation plan. Following the consolidation, India will be left with 12 public sector banks > FollowUs: twitter.com/@Suvbharat_Times
The merger of Canara Bank and Syndicate Bank will create the fifth-largest lender, with Union Bank, Andhra Bank, and Corporation Bank amalgamation at number six based on business at the end of March 2019. Following the consolidation, the country will be left with 12 public sector banks, instead of 18 at present, with the merged entity comprising Punjab National Bank, Oriental Bank of Commerce and United Bank of India becoming the second-largest lender after SBI.
While bank consolidation has been on the agenda for over a decade, governments had dithered on moving ahead with it. Since coming to power five years ago, the Modi administration completed the merger of SBI associates with the parent, while merging Bank of Baroda, Dena Bank, and Vijaya Bank earlier this year to create what is currently the country’s second-largest public sector bank > FollowUs:twitter.com/@Suvbharat_Times