The merger of 10 public sector banks (PSBs) into four will come into effect from April 1, 2020, Finance Minister Nirmala Sitharaman said on Wednesday.
“The Union Cabinet has given its go-ahead for the merger proposal and the government has been in regular touch with these banks,” Sitharaman told reporters here.
There will be no regulatory issues, she added.
“The banks’ merger is on course and decisions have already been taken by the respective bank boards,” the minister said.
In August 2019, the government had announced four major mergers of public sector banks, bringing down their total number to 12 from 27 in 2017.
The mergers are aimed at creating global sized banks in India.
According to the plan, United Bank of India and Oriental Bank of Commerce will be merged with Punjab National Bank; Syndicate Bank will be merged with Canara Bank; Allahabad Bank will be amalgamated with Indian Bank; and Andhra Bank and Corporation Bank will be consolidated with Union Bank of India.
Last year, Dena Bank and Vijaya Bank were merged with Bank of Baroda. Prior to this, the government had merged five associate banks of SBI and Bharatiya Mahila Bank with the State Bank of India.