New Delhi, Aug. 30 : The National Democratic Alliance (NDA) government on Friday announced merging of Punjab National Bank, Oriental Bank of Commerce and the United Bank of India creating the second-largest banking network in the country.
While addressing a press conference at New Delhi’s National Media Center, Finance minister Nirmala Sitharaman said PNB, OBC and UBI banks would be merged together forming the second largest public sector bank with a business of Rs 17.95 lakh crores.
Sitharaman also said specialised agencies had been set up monitoring every loan which is over Rs 250 crores.
To strengthen the Financial sector, the NDA government had taken a slew of measures due to which the Non-performing assets (NPAs) had decreased from 8.65 lakh crores to 7.90 lakh crores.
After today’s announcement regarding the merger of banks post consolidation, India would now have 12 public sector banks from 27 public sector banks.
“We should continue with two banks with national presence- Bank of India with Rs 9.3 lakh crores of business size and Central Bank with Rs 4.68 lakh crores of business size”, Sitharaman added.
The Indian Bank would merge with Allahabad Bank making it the seventh largest public sector bank with a business of Rs 8.08 lakh crores.
Similarly, Canara Bank would be merged with Syndicate Bank making it the fourth largest public sector bank with business of Rs 15.20 lakh crores.
The Union Bank of India with Andhra Bank and Corporation Bank would now become the fifth largest public sector bank.
