The Union Cabinet, chaired by the Prime Minister has approved the mega consolidation of ten PSBs into four which include the –

• Amalgamation of Oriental Bank of Commerce and United Bank of India into Punjab National Bank
• Amalgamation of Syndicate Bank into Canara Bank
• Amalgamation of Andhra Bank and Corporation Bank into Union Bank of India
• Amalgamation of Allahabad Bank into Indian Bank

About the merger

• The amalgamation would be effective from 1.4.2020 and would result in creation of seven large PSBs with scale and national reach with each amalgamated entity having a business of over Rupees Eight lakh crore.
• The Mega consolidation would help create banks with scale comparable to global banks and capable of competing effectively in India and globally.
• Greater scale and synergy through consolidation would lead to cost benefits which should enable the PSBs enhance their competitiveness and positively impact the Indian banking system.

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