However, the government did not postpone the process of merger of six public sector banks into four anchor lenders with a view to create global-size institutions for achieving the objective of USD 5 trillion economy by March 2025. Effective April 1, United Bank of India and Oriental Bank of Commerce were merged with Punjab National Bank, making it second largest Public Sector Bank (PSB). Syndicate Bank was merged with Canara Bank while Allahabad Bank was amalgamated with Chennai-based Indian Bank. About the financial health of banks, Panda said that 11 out of the 12 public sector banks posted profit in the last quarter. To cushion against future shock, the secretary said that public sector banks have raised ₹40,000 crore in the form of equity, and bonds and another ₹25,000 crore would be raised in the next three months.

Source: Mint December 27, 2020 07:41 UTC