In a strive to boost the Indian economy, yet again the finance
minister of the country, Nirmala Sitharaman on Friday announced the integration
of 10 public sector banks in the country that would come out with the figure total of 12 banks from the existing 27 banks in 2017.
Here the announcement unfolded the biggest news for
today of Punjab National Bank being merged with Oriental Bank of Commerce and
United Bank. This announcement marks its sequence from last week’s address of
the finance minister on various measures to be taken to gauge up the
The three banks (PNB, OBC and UB) would therefore form
India’s second-largest bank after the State Bank of India (SBI) with Rs 17.95
lakh crore of business and around 11,437 branches.
The announcement was followed by the list of banks
merging including the merger of Canara Bank and Syndicate Bank; Union Bank of
India, Andhra Bank and Corporation Bank. The seventh-largest public sector bank
to be formed with a business of Rs 8.08 lakh crore would see the merging of
Allahabad Bank and the Indian Bank, whereas the Andhra Bank and Corporation
bank shall become the fifth largest public sector bank.
Nirmala Sitharaman along with announcing major steps
to encourage and empower the banks, she also said that a board of committee of
nationalised banks would be appraising the performance of managers. The government further mentioned that the PSU banks will be repositioned for the real purpose of boosting the economy to the $5 trillion marks becoming
financially stronger with bold governance.
· The announcement revealed that the loan recoveries have gone up to the level of Rs 1, 21,076 crore and the gross NPAs/ poor loans have depleted from Rs 8.65 lakh crore to Rs 7.90 crore.
This step will not cause any disruptions but would provide a balanced financial stability of the country and the synergy would boost up Indian economy.