New Delhi: The Centre on Friday announced the merger of 10 nationalised banks, thus bringing down their number from 27 to only 12.
The announcement was made by Finance Minister Nirmala Sitharaman as part of the government’s push to revive the economy. The Minister said these 12 banks will power the five trillion economy dream of the country. She also assured that there would be no retrenchment following the mergers.
This is by far the biggest measure initiated in the banking sector in the country since the nationalisation of banks in 1969.
Oriental Bank of Commerce and United Bank merged with Punjab National Bank
Canara Banka and Syndicate Bank to be merged to form the fourth-largest bank with a business of Rs 15.20 lakh crore.
Union Bank of India, Andhra Bank, Corporation Bank to be merged
Indian Bank is being merged with Allahabad Bank
Bank of India and Central Bank of India will continue to function as is.
Other measures to reform the public sector banks:
The board of the nationalised banks to appraise the performance of the general manager and above including the managing director.
The boards to ensure that GMs and above are given tenure of at least two years.
A chief risk officers post can be recommended by the board.
The strength of the executive director in larger banks to be raised to four.