TNI Bureau: Finance Minister Nirmala Sitharaman today announced a big reforms in public sector banks in India.
The Finance Minister announced amalgamation of 10 public sector banks into four big banks.
After today’s announcement (merger of banks) post consolidation, India will now have 12 Public Sector Banks from 27 Public Sector Banks.
The Government also announced capital infusion totalling over Rs 55,250 crore into public sector banks.
- PNB, OBC and United Bank to be merged. (Second largest PSB with Rs 18 lakh crore business)
- Canara and Syndicate Bank merged (Fourth largest bank with Rs 15.2 lakh crore business)
- Union Bank of India, Andhra Bank and Corporation Bank merged. (5th largest PSB with Rs 14.6 lakh crore business)
- Indian Bank and Allahabad Bank merged. (7th largest with Rs 8.08 lakh crore business)
- Govt will continue with 2 banks – Bank of India with Rs 9.3 Lakh Crores of business size and Central Bank with Rs 4.68 Lakh Crores of business size
- There is no government interference in commercial decisions of banks.
- Govt monitoring large loans to avert frauds
- Sanctioning and monitoring of loans are separated
- Gross Non Performing Assets have come down from 8.65 lakh crores to 7.90 lakh crores
- Specialised agencies have been set up who are monitoring every loan which is over Rs 250 crores.
- Govt taking steps to make a clear path to achieve a target of $5 trillion economy