Union Finance minister Nirmala Sitharaman on Thursday reviewed the development on the merger of public sector banks that is expected to be effective from April 1.
“Amalgamating PSBs made a presentation to Hon. FM Nirmala Sitharaman on their preparedness. Amalgamated PSBs to ensure no disruption to credit and enhanced customer experience,” the finance ministry said in a tweet.
The Union cabinet last week cleared the amalgamation of 10 public sector banks (PSBs) into four entities, a move targeted at creating fewer but stronger banks in India.
As of now, India has 18 Public sector banks as compared to 27 in 2017. After the amalgamation, the number will further reduce to 12.
In August 2017, the finance ministry had announced the merger of 10 public sector lenders. Punjab National Bank (PNB), Oriental Bank of Commerce (OBC) and United Bank will be brought together to constitute the second-largest public sector bank India, after State Bank of India (SBI).
Canara Bank and Syndicate Bank will amalgamate to become the fourth-largest public sector lender, while Union Bank of India will merge with Andhra Bank and Corporation Bank to build India’s fifth-largest lender. Indian Bank will amalgamate with Allahabad Bank to create India’s seventh-largest PSB.