Finance minister Nirmala Sitharaman on Thursday reviewed the progress on the amalgamation of public sector banks that is expected to come into effect from April 1.
“Amalgamating PSBs made a presentation to Hon. FM Nirmala Sitharaman on their preparedness. Amalgamated PSBs to ensure no disruption to credit and enhanced customer experience,” the finance ministry said in a tweet.
The Union cabinet last week approved the consolidation of 10 public sector banks (PSBs) into four entities, a move aimed at having fewer but stronger lenders in India.
At present, India has 18 state-owned banks compared with 27 in 2017. After the merger, the number will further come down to 12.
A senior public sector bank official told Mint that the amalgamation plan is on track and the lenders will make sure that customers are not put into inconvenience.
“We will ensure that there is no disruption to credit, as directed by the finance minister,” the official said.
Last August, the finance ministry had announced the consolidation of 10 public sector lenders. Punjab National Bank (PNB), Oriental Bank of Commerce (OBC) and United Bank will be brought together to form the second largest public sector bank in the country, after State Bank of India (SBI).
Canara Bank and Syndicate Bank will merge to become the fourth-largest public sector lender, while Union Bank of India will merge with Andhra Bank and Corporation Bank to build India’s fifth-largest lender. Indian Bank will merge with Allahabad Bank to make India’s seventh-largest PSB.
While human resource and information technology integration will take some time, balance sheets and stocks will be merged from April 1.