Finance Secretary Rajiv Kumar Explains Reason Behind Bank Mergers

In a major reform measure, the Central government on Friday announced the merger of 10 public sector banks into four entities, bringing down the total number of PSBs to 12 from 27 in 2017.  According to Finance Minister Nirmala Sitharaman, Punjab National Bank, Oriental Bank of Commerce and United Bank will be merged to become the second-largest PSB in India with a total business of Rs 17.5 lakh crore and 11,437 branches after SBI with a business of Rs 52.05 lakh crore. Canara Bank and Syndicate Bank will be merged into one entity to create the 4th largest public sector bank with Rs 15.20 lakh crore business, while Union Bank of India, Andhra Bank, and Corporation Bank will be amalgamated into a single entity to become India's 5th largest public sector bank with Rs 14.59 lakh crore business.