India’s Finance Minister Nirmala Sitharaman made a very important announcement recently. She announced that four separate public sector banks will now be merged and will automatically become India’s second largest PSB after the State Bank of India.
It is estimated that the merged entity of the bank will have a business worth of Rs 17.95 lakh crore(1.5 times that of PNB). This entity would only have access to the second largest bank branch network in the country with over 11,437 branches across India. The Finance Minister also announced that the CASA ration of the amalgamated bank would be Rs 40.52% and CET-1 would be estimated at around 7.46%.
Canara Bank and Syndicate Bank would also face a merger and will form the second biggest PSB. The combined business of both these banks would be Rs 15.20 lakh crore. On the other hand, the Union Bank will be merged with the Andhra Bank and Corporation Bank. It has also been planned that the Indian Bank will be merged with the Allahabad Bank