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Centre announces major bank mergers: Highlights – Times of India

NEW DELHI: Finance minister Nirmala Sitharaman made a series of announcements on Friday to give fillip to the banking and financial sector in the country during a press conference in the national capital. Here are the highlights of her address:

* Punjab National Bank, Oriental Bank of Commerce and United Bank of India will be merged to form the second largest public sector bank with business of around Rs 18 lakh crore. The anchor bank will be Punjab National Bank.

* Canara Bank and Syndicate Bank will be merged to form the fourth largest public bank with a business of Rs 15.20 lakh crore. Union Bank of India, Andhra Bank and Corporation Bank will also be merged with business of Rs 14.59 lakh crore.

* Indian Bank will be merged with Allahabad Bank. It will be the seventh largest Public Sector Bank with business of Rs 8.08 lakh crore.

* Number of Public Sector Banks have come down to 12 from 27.

* Bank boards have been given flexibility to fix sitting fee of independent directors.

* Partial credit guarantee scheme for NBFCs has been executed. Rs 3,300 crore liquidity support has been given and Rs 30,000 crore is in the pipeline.

* To prevent Nirav Modi like frauds, SWIFT messages have been linked to the core banking system.

* Gross bad loans of public sector banks have come down to Rs 7.9 lakh crore from Rs 8.65 lakh crore at December-end 2018.

* Gains are visible from reforms in PSBs as 14 of them reported profit in first quarter of 2019-20.

Centre announces major bank mergers: Highlights – Times of India

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