Modi govt announces mega merger of public sector banks

New Delhi : The Narendra Modi government has announced the merger of ten public sector banks into four banks, aiming to set up a strong financial system as to make the country a five trillion economy.

Briefing media in New Delhi on Friday, Union Finance Minister Nirmala Sitharaman announced that the merger of Oriental Bank of Commerce and United Bank with Punjab National Bank as well as the merger of Canara Bank and Syndicate Bank.

The merger of Union Bank of India, Andhra Bank and Corporation Bank and the consolidation of Indian Bank with Allahabad Bank was also announced.

The Finance Minister said, after the merger of banks, the country will now have 12 public sector banks instead of 27. She said, the profitability of public sector banks has improved and total gross non-performing assets have come down to  7.9 lakh crore rupees in March this year from 8.65 lakh crore rupees in December last year.

Sitharaman also clarified that no retrenchment has taken place post-merger of Bank of Baroda, Dena Bank and Vijaya Bank and staff has been redeployed and best practices in each bank have been replicated in others.

The Minister also unveiled governance reforms in public sector banks, saying their boards will be given autonomy and enabled to do succession planning.

Also Read: CBI Conducts Joint Surprise Checks At 150 Locations