Finance Minister Nirmala Sitharaman announced a big consolidation of public sector banks: 10 public sector banks to be merged into 4. This is done in order to create a stepping stone to the government’s $5 trillion GDP target. The 4 Mega mergers are Allahabad Bank and Indian Bank (anchor bank- Indian Bank); United Bank, PNB, OBC (anchor bank-PNB); Union Bank, Andhra Bank and Corporation Bank (anchor bank- Union Bank) and Canara Bank and Syndicate Bank (anchor bank- Canara Bank). This is done to change the entire operating model as the PSB still operate in old fashioned way. As India’s GDP has crashed to a six year low of 5% so a merger move could be counter-productive.
Finance Minister Nirmala Sitharaman announced a big consolidation of public sector banks: 10 public sector banks to be merged into 4. This is done in order to create a stepping stone to the government’s $5 trillion GDP target. The 4 Mega mergers are Allahabad Bank and Indian Bank (anchor bank- Indian Bank); United Bank, PNB, OBC (anchor bank-PNB); Union Bank, Andhra Bank and Corporation Bank (anchor bank- Union Bank) and Canara Bank and Syndicate Bank (anchor bank- Canara Bank). This is done to change the entire operating model as the PSB still operate in old fashioned way. As India’s GDP has crashed to a six year low of 5% so a merger move could be counter-productive.
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