Indian Finance minister Smt. Nirmala Sitharaman on Friday announced that there will be merger of most prominent banks of the country. There will be a merger of 10 state run banks into 4 banks. the Union Minister further added that "the government was making the path clear for a $5 trillion economy" through the consolidation of public sector banks. The banks which will be merged are Punjab National Bank, Oriental Bank of Commerce and United Bank with business of ₹7.95 trillion constitute India’s second-largest bank. This has come just a week after announcing measures to boost consumer and investment confidence.
Next merger will be between Canara Bank and Syndicate Bank, which will make the fourth-largest bank, with ₹15.2 trillion business. Other merger will be of Union Bank will be merged with Andhra Bank and Corporation Bank to build India’s fifth-largest public sector bank with ₹14.59 trillion in business. And Lastly Indian Bank will be merged with Allahabad Bank to make India’s seventh-largest PSB with a business of ₹8.08 trillion.