Nirmala announces mega PSU Bank mergers in Reforms 2.0

Finance Minister Nirmala Sitharaman announced a series of mega public sector bank mergers to consolidate the banking system and ease the widespread slowdown of the economy. As a part of the government's Reforms 2.0, Sitharaman said that 10 public sector banks will be merged into four entities, post the meeting with PSB chiefs. She announced that Punjab National Bank, Oriental Bank of Commerce and United Bank will be merged to form the second-largest public sector bank with a business of Rs 17.5 lakh crore. Next, she announced the consolidation of Canara Bank and Syndicate Bank that will bring business of ₹15.20 lakh crore. The third merger will be between Union Bank, Andhra Bank and Corporation Bank to build India’s fifth-largest public sector bank with ₹14.59 lakh crore in business. Also, the Indian Bank will be merged with Allahabad Bank which will create a business of ₹8.08 lakh crore.