The union government has decided to merge 10 public sector banks into 4 entities. Announcing the decision, finance minister Nirmala Sitharaman said Indian Bank will be merged with Allahabad Bank (anchor bank – Indian Bank), Punjab National Bank, Oriental Bank of Commerce and United Bank of India will be amalgamated (Punjab National Bank to the anchor bank), Union Bank of India, Andhra Bank and Corporation Bank will become a single entity (Union Bank of India to be the anchor bank) and Canara Bank and Syndicate Bank will become one (Canara Bank being the anchor bank). The scheme or merger will reduce the number of public sector banks in the country from 27 to 12. The minister said the consolidation will give the banks scale. The government also said it will provide Rs 55,000 crore to the public sector banks by way of capital infusion – with Punjab National Bank getting Rs 16,000 crore, Union Bank of India Rs 11,700 crore, Bank of Baroda Rs 7000 crore, Indian Bank Rs 2500 crore, Indian Overseas Bank Rs 3800 crore, Central Bank of India Rs 3300 crore, UCO Bank Rs 2100 crore, United Bank of India Rs 1,600 crore and Punjab and Sind Bank Rs 750 crore). The government had in 2018 brought in the merger of Bank of Baroda, Dena Bank and Vijaya Bank with Bank of Baroda becoming the anchor bank. The government has decided to retain the current status of Bank of India, Central Bank of India, IDBI Bank, Punjab and Sind Bank, Uco Bank and Bank of Maharashtra.
