The Cabinet Committee on Economic Affairs (CCEA) has approved consolidation of 10 state-run banks into four, Finance Minister Nirmala Sitharaman said on March 4.

The finance minister had announced the merger of the four public sector banks (PSBs) in August last year.

The mergers are scheduled to come into effect from April 1, and Sitharaman said the government is sticking to the deadline.

As per the proposal, Oriental Bank of Commerce (OBC) and United Bank of India (UBI) would be merged into Punjab National Bank (PNB). The move will make PNB India’s second biggest public sector bank after State Bank of India (SBI).

Syndicate Bank will be merged with Canara Bank, creating India’s fourth largest public sector bank.

Union Bank of India, Andhra Bank and Corporation Bank will be merged together to create fifth largest public sector bank.

Indian Bank and Allahabad Bank will be merged to form India’s seventh largest public sector bank.

Sitharaman said the Cabinet analysed the merger of Bank of Baroda, Dena Bank and Vijaya Bank to assess the feasibility of consolidation of PSBs.

Source & Courtesy: moneycontrol.com