The government on Friday unveiled a mega plan to merge 10 public sector banks into four as part of plans to create fewer and stronger global-sized lenders as it looks to boost economic growth from a six-year low.
Finance Minister Nirmala Sitharaman announced four new set of mergers -- Punjab National Bank, Oriental Bank of Commerce and United Bank of India will combine to form the nation's second-largest lender; Canara Bank and Syndicate Bank will merge; Union Bank of India will amalgamate with Andhra Bank and Corporation Bank; and Indian Bank will merge with Allahabad Bank. These mergers will create four public sector banks.
Apart from these four newly formed Public sector banks, eight more banks will remain in public sector. Post the mega merger, here are the six PSU banks that will remain independent: Indian Overseas Bank, Uco Bank, Bank of Maharashtra and Punjab and Sind Bank, which have strong regional focus, will continue as separate entities. Bank of India and Central Bank of India will also continue to operate separately as before. After the mergers, the country will have 12 public sector banks, including State Bank of India and Bank of Baroda.
If list it out, the new 12 public sector banks come like this:
10.Central Bank of India
11.State Bank of India
12. Bank of Baroda