With an aim to create global sized banks in India, Finance Minister Nirmala Sitharaman has said the exercise of consolidation of 10 public sector banks (PSBs) into four is on course and the merger will come into effect from April 1, 2020. Sitharaman said the Union Cabinet has given a go-ahead for the merger proposal and the government has been in regular touch with these banks. She added there will be no regulatory issues.
She mentioned that the banks' merger is on course and decisions have already been taken by the respective bank boards. In the biggest consolidation exercise in the banking space, the government in August 2019 had announced four major mergers of public sector banks, bringing down their total number to 12 from 27 in 2017.
United Bank of India and Oriental Bank of Commerce will be merged with Punjab National Bank; Syndicate Bank will be merged with Canara Bank; Allahabad Bank will be amalgamated with Indian Bank; and Andhra Bank and Corporation Bank will be consolidated with Union Bank of India.
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