In a major reform measure, Union Finance Minister Nirmala Sitharaman addressed her second press conference on the economic slowdown. The finance minister announced the merger of 10 public sector banks into four entities, which includes the amalgamation of;

(i) Punjab National Bank + Oriental Bank of India + United Bank of India = Punjab National Bank
(ii) Canara Bank + Syndicate Bank = Canara Bank
(iii) Union Bank + Andhra Bank + Corporation Bank = Union Bank
(iv) Indian Bank + Allahabad Bank = Indian Bank

Meanwhile, India's GDP growth falls to 5% in the April-June quarter from 5.8% in the January-March quarter. India will now have 12 Public Sector Banks from 27 Public Sector Banks.
 

List of 10 Banks to be Amalgamated into 4 NextGen PSBs

Head/Anchor Bank

Merged banks

Business Size

(Rupees)

PSB Rank by Size

Punjab National Bank

Punjab National Bank

Oriental Bank of Commerce

United Bank of India

17.94 Lakh crore

2nd largest Bank

Canara Bank

Canara Bank

Syndicate Bank

15.20 Lakh crore

4th largest Bank

Union Bank of India

Union Bank of India

Andhra Bank

Corporation Bank

14.59 Lakh crore

5th largest Bank

Indian Bank

Indian Bank

Allahabad Bank

8.08 Lakh crore

7th largest Bank

State Bank of India (Merged earlier)

52.65 Lakh crore

1st largest bank

Bank of Baroda (Merged earlier)

16.13 Lakh crore

3rd largest bank

 

Business Size of Remaining 6 Banks:

Bank

Business Size

Bank of India

9.03 Lakh crore (6th Largest Bank)

Central Bank of India

4.68 Lakh crore

Indian Overseas Bank

3.75 Lakh crore

UCO Bank

3.17 Lakh crore

Bank of Maharashtra

2.34 Lakh crore

Punjab & Sind Bank

1.71 Lakh crore


The Central Government will invest Rs 55,250 Crore of capital in these Banks for their credit growth and regulatory compliance with a purpose to boost the economy. 

Finance Minister Nirmala Sitharaman has also given the estimated amount of capital that will be invested in these state-run banks. The estimated amount is are as follows:

Bank Name Amount (Rs. in crore)
Punjab National Bank Rs 16,000 
Union Bank of India Rs 11,700 
Bank of Baroda Rs 7,000 
Canara Bank Rs 6,500 
Indian Bank Rs 2,500 
Indian Overseas Bank Rs 3,800
Central Bank of India Rs 3,300 
UCO Bank Rs 2,100 
United Bank Rs 1,600 
Punjab & Sind Bank Rs 750