New Delhi: Finance Minister Nirmala Sitharaman said on Wednesday that the work of merging 10 public sector banks to form four big banks is going on. He said that the merger will come into effect from April 1, 2020. Sitharaman said that the Union Cabinet has approved the merger proposal and the government is in constant touch with the banks concerned.
He said that there would be no regulatory issue. “Bank merger is on track and the board of directors of the concerned banks have already taken a decision,” the finance minister told reporters here. The merger is aimed at creating large banks of global size in the country. It is noteworthy that in August last year, the government took a big decision and announced the merger of 10 public sector banks to form four banks.
Under this decision, it is proposed to merge United Bank of India and Oriental Bank of Commerce with Punjab National Bank, Syndicate Bank with Canara Bank, Allahabad Bank with Indian Bank and Andhra Bank and Corporation Bank with Union Bank of India. . Last year Dena Bank and Vijaya Bank have been merged with Bank of Baroda. Punjab National Bank, Oriental Bank of Commerce and United Bank of India will be merged, making it the second largest bank in the country.
