New Delhi, March 4: Prime Minister Narendra Modi-led Union Cabinet on Wednesday approved the mega consolidation in 10 public sector banks into four entities, which would be effective from April 1, 2020. This happens to be the second biggest bank mergers of PSBs in less than a year, as previously it was done by the Union Finance Minister Nirmala Sitharaman in August 2019.

Informing about the latest development, Union Finance Minister Nirmala Sitharaman on Wednesday said, "Banks have submitted the scheme of amalgamation, which the Cabinet has approved today." Though she mentioned it clearly that every bank service will remain intact after the merger. PNB-OBC-United Bank to Become One Entity; Canara-Syndicate, Indian Bank-Allahabad Bank, UBI-Andhra-Corporation Bank to Merge, Announces FM Nirmala Sitharaman

Earlier in August 2019, Union Finance Minister had announced the the consolidation of 10 public sector lenders after which there are 18 PSBs compared with 27 in 2017. Following the next merger in April, there will be 12 public sector lenders in the country. Sources known tho the matter state that 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).

Among the other details pouring in, as reported by LiveMint, the second merger of PSBs will be between Canara Bank and Syndicate Bank, while Union Bank of India will be merged with Andhra Bank and Corporation Bank. Also, Indian Bank's merger with Allahabad Bank is on the cards. Meanwhile, Union Information and Broadcasting Minister Prakash Javadekar had said that the government had infused Rs 40,000 crore in these banks in the FY 2019-20.

(The above story first appeared on LatestLY on Mar 04, 2020 04:41 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).