At a time when the the Indian Economy is plunging towards a slowdown, on Friday, Finance Minister Nirmala Sitharaman announced the merger of Punjab National Bank, Oriental Bank of Commerce and United Bank.
Elaborating on merger of the three public sector banks, Sitharaman said that the target bank will be the second largest public sector bank with a business of Rs. 17.95 lakh crore, which will be 1.5 times the size of Punjab National Bank.
Consolidated PNB+OBC+United Bank to be 2nd largest #PSB with ~₹18 lakh cr. business and 2nd largest branch network in India. Scale, nationwide & global presence, and high CASA to drive growth. @PMOIndia @FinMinIndia @PIB_India #PSBsFor5TrillionEconomy pic.twitter.com/Ir63tTBiam— Rajeev kumar (@rajeevkumr) August 30, 2019
Simultaneously, the Minister also announced plans of consolidation of three other PSU bank: Canara Bank and Syndicate Bank; Union Bank of India, Andhra Bank and Corporation Bank, and Indian bank with Allahabad Bank.
Consolidated Canara+Syndicate to be 4th largest #PSB with ₹15.2 Lakh Cr. biz & 3rd largest branch n/w in India. Synergies, culture & common CBS platform to enable quick realisation of operational gains & enhanced lending capacity. @PMOIndia @FinMinIndia #PSBsFor5TrillionEconomy pic.twitter.com/rBT2OgBjZ6— Rajeev kumar (@rajeevkumr) August 30, 2019
Consolidated Union+Andhra+Corporation Banks to be 5th largest #PSB with ₹14.6L Cr. business & 4th largest branch network in India. Strong scale benefits to all 3 with biz becoming 2 to 4½ times that of individual bank. @PMOIndia @FinMinIndia @PIB_India #PSBsFor5TrillionEconomy pic.twitter.com/GWjg7WEd1U— Rajeev kumar (@rajeevkumr) August 30, 2019
Consolidated Indian & Allahabad Banks to be 7th largest #PSB with ₹ 8.08 lakh cr. business. Strong scale benefits to both with business doubling. High CASA & lending capacity combined in consolidated bank. @PMOIndia @FinMinIndia @PIB_India #PSBsFor5TrillionEconomy pic.twitter.com/fRercARJIU— Rajeev kumar (@rajeevkumr) August 30, 2019
The Finance Minister also informed that loan recoveries have hit a recover level of Rs. 1,21,076 crore, adding that gross non-performing assets (NPAs) – or bad loans have come down from Rs. 8.65 lakh crore to Rs. 7.90 lakh crore.