New Delhi : The Central Government made a big announcement on Friday, intensifying its exercise to take India's economy to 50 trillion (5 trillion). Finance Minister Nirmala Sitharaman has announced to form 4 banks by combining 10 public sector banks.
With the implementation of this announcement, 12 public sector banks and 27 banks in the private sector will be left in the country.
Finance Minister Nirmala Sitharaman addressing a press conference said that the United Bank and Oriental Bank will be merged with Punjab National Bank. Syndicate Bank will be merged with Canara Bank, Allahabad Bank with Indian Bank and Andhra Bank and Corporation Bank with Union Bank.
Central Government is not just planning to merge banks but is also doing another exercise to improve the banking system, in which the chief risk officer will be appointed in each bank. Apart from this, the board will be given exemption to give more money to non-official directors to big banks. The Finance Minister said during the press conference that the NPAs of public sector banks have also improved.
Changes in the ranking of banks
Explaining that this merger will change the ranking of banks in the country, the fianance minister said , With the merger of United Bank and Oriental Bank, the total assets of Punjab National Bank will be 18 lakh crore, with this it will become the second largest public sector bank in the country. At the same time, with the merger of Andhra Bank and Corporation Bank, the total assets of Union Bank will be Rs 14.6 lakh crore. With this, it will become the fifth largest bank in the public sector. Apart from this, after merging with Allahabad Bank, the total assets of Indian Bank will be 8.8 lakh crores, with it , it will become the seventh largest public sector bank in the country.
Finance Secretary Rajeev Kumar said, “In amalgamation process, the number of banks have been brought down to 12 from 27. There has been no retrenchment so far, there is no chance of retrenchment. The benefits of employment and HR will improve, with amalgamation the best combination will be taken up. “
“The $5 trillion economy goal will be achieved through reforms, financial strength, technology, consolidation and strong governance. Rs 55,250 crore upfront capital for credit growth and regulatory compliance to support economy,” said Finance Secretary Rajeev Kumar.
