New Delhi : Announcing a slew of measures to prop up the slowing economy, Finance Minister Nirmala Sitharaman announced the merger of 10 nationalised banks into four entities. This major banking reform will reduce the number of public sector banks to 12 from 27.
Speaking on the profitability of the public sector banks, the finance minister has recalled that the total gross non-performing assets have come down to Rs 7.9 lakh crore at end-March 2019 from Rs 8.65 lakh crore at end-December 2018, thus providing a positive response from the banking sector even after an economic slowdown in the country.
Canara Bank and Syndicate Bank will be merged and this will be the third largest bank, Nirmala Sitharaman says. iFlex will be the Fintech.
Union Bank of India, Andhra Bank, Corporation Bank will be merged to become the fifth largest PSB.
Indian Bank is being merged with Allahabad Bank. The business size will make it the seventh largest bank.
Nirmala Sitharaman announces the merger of Punjab National Bank, Oriental Bank of Commerce, and United Bank. The merged entity will be the second largest bank in India with business of Rs. 17.95 lakh crore.
Further adding on to the “relatively progressing” economic status of the country, loan recoveries have reached record levels, says Ms. Sitharaman and adds it has crossed Rs. 1.21 lakh crore in FY19.
Continuing with the last week’s press meet where she mentioned about a slew of measures to be taken to improve the economy, today’s press meet discussed in length the assessment of the economy as well as the declaration of merging the public sector banks