BANK CONSOLIDATION

About:

• Under the scheme of amalgamation,
  • Indian Bank will be merged with Allahabad Bank (anchor bank - Indian Bank);
    
    
  • PNB, OBC and United Bank to be merged (PNB will be the anchor bank);
    
    
  • Union Bank of India, Andhra Bank and Corporation Bank to be merged (anchor bank - Union Bank of India); and
    
    
  • Canara Bank and Syndicate Bank to be merged (anchor bank - Canara Bank).
    
    
  
  
  
• In place of 27 public sector banks in 2017, now there will be 12 public sector banks after the latest round of consolidation of PSU banks.
  
  
• The merger announcement was followed by an equity infusion move of Rs 55,250 crore in these banks to enable them to grow their loan book.
  
  
• This is a step by government towards building Next-Generation Banks. The consolidation of public sector banks will give them scale.