Finance Minister Nirmala Sitharaman Friday announced the merger of Indian Bank and Allahabad Bank to create the 7th largest public sector bank in India with Rs 8.08 lakh crore business.
"Consolidated Indian & Allahabad Banks to be 7th largest #PSB with ? 8.08 lakh cr. business. Strong scale benefits to both with business doubling. High CASA & lending capacity combined in consolidated bank," tweeted Finance Secretary Rajeev Kumar.
Consolidated Indian & Allahabad Banks to be 7th largest #PSB with ₹ 8.08 lakh cr. business. Strong scale benefits to both with business doubling. High CASA & lending capacity combined in consolidated bank. @PMOIndia@FinMinIndia@PIB_India#PSBsFor5TrillionEconomypic.twitter.com/fRercARJIU- Rajeev kumar (@rajeevkumr) August 30, 2019
Besides this, the finance minister also announced the merger of 10 public sector banks into four big banks.
The government's big bang bank reform comprises the amalgamation of Punjab National Bank, Oriental Bank of Commerce and United Bank; Canara Bank and Syndicate Bank; Union Bank of India, Andhra Bank and Corporation Bank; and Indian Bank and Allahabad Bank.
This announcement comes a week after Sitharaman announced a slew of measures to give a fillip to the economy.
The finance minister last week addressed a similar press conference and announced an array of reforms including a rollback of enhanced surcharge on foreign portfolio investors levied in Budget 2019, lifting the angel tax on start-ups, a package to assuage the bleeding auto sector and an injection of Rs 70,000 crore into public sector banks amongst others in its bid to boost economic growth.