The Finance Minister Nirmala Sitharaman conducted a press conference on Friday and announced the merging of 10 public sector banks into 4. She said that having strong governance at state-run banks is as important as merging weak ones with the strong ones.
As per the announcement, these banks will be merged together:
1. Punjab National Bank + Oriental Bank of India + United Bank of India
2. Indian Bank + Allahabad Bank
3. Union Bank + Andhra Bank + Corporation Bank
4. Canara Bank + Syndicate Bank
The government of India had earlier announced to invest ₹70,000 crores in public banks.
After the merging, only 12 public sector banks will be left instead of 27. Which are, State Bank of India, Punjab National Bank, Canara Bank, Indian Overseas Bank, UCO Bank, Union Bank of India, Bank of India, Central Bank of India, Indian Bank, Bank of Baroda, Bank of Maharashtra, and Punjab and Sind Bank.