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10 public sector banks to be merged into four
Why is it in the news?
- Finance Minister Nirmala Sitharaman today announced a big consolidation of public sector banks: 10 public sector banks to be merged into four.
Highlights of the Report
- As per the Finance Ministry, these bank mergers will lead to the creation of big banks with an enhanced capacity to give credit.
- These big banks would also be able to compete globally and increase their operational efficiency by reducing their cost of lending.
- Following all these mergers, the country will have a total of 12 public sector banks.
- Half of these 12 banks- Punjab National Bank, Canara Bank, Union Bank of India, Indian Bank, State Bank of India, and Bank of Baroda-will be able to compete at a global level.
- Bank of India and Central Bank of India will both be able to expand their national presences.
- Indian Overseas Bank, UCO Bank, Bank of Maharashtra, and Punjab and Sind Bank will be able to strengthen their regional focus.
