Mega Consolidation of PSBs approved by Union Cabinet

The Union Cabinet chaired by Prime Minister Narendra Modi has decided to consolidate 10 public sector banks into 4. The details of the banks that will be merged into a single bank are as given below:

i) Oriental Bank of Commerce and United Bank of India will be merged with Punjab National Bank

ii) Syndicate Bank will be merged with Canara Bank

iii) Andhra Bank and Corporation Bank will be merged with Union Bank of India

iv) Allahabad Bank will be merged with Indian Bank

The consolidation of these banks would take effect from April 1, 2020.

Each consolidated entity would have a business of more than ₹8 lakh crores. This has been done to make these banks achieve scale on par with global banks and also to make them competitive within India and at the international level. This will also strengthen the financial capacity of the entities thereby providing for more lending and financial inclusion as these banks have great national reach.

The amalgamation of these banks will also help in the creation of digitally driven consolidated banks with better synergy.