New Delhi: The government has taken up a major step in the financial sector where it has been decided to merge Punjab National Bank, Oriental Bank of Commerce and United Bank of India to create the second-largest banking network in the country with 11,431 branches.
“Punjab National Bank, Oriental Bank of Commerce and United Bank will be brought together and they shall form the second largest public sector with the business of Rs 17.95 lakh crore,” said Finance Minister Nirmala Sitharaman at a press conference.
The idea behind this step is to make India a US dollar 5 trillion economy in the next five years.
Bank of India and Central Bank of India will continue to function as it is. Indian Overseas Bank, UCo Bank, Bank of Maharashtra and Punjab and Sindh Bank will continue to function in their regional areas, she said.
Canara Banka and Syndicate Bank will be merged and this will be the third-largest bank, Nirmala Sitharaman said.
Union Bank of India, Andhra Bank, Corporation Bank will be merged to become the fifth-largest Public Sector Bank.
Indian Bank is being merged with Allahabad Bank. The business size will make it the seventh-largest bank.
Profitability of public sector banks has improved and total gross non-performing assets have come down to Rs 7.9 lakh crore at end-March 2019 from Rs 8.65 lakh crore at end-December 2018, says the Finance Minister.
