Nirmala Sitharaman announces major state-run bank mergers

"They shall form the second largest public sector bank with business of Rs 17.95 Lakh Crore," Nirmala Sitharaman said while addressing a press conference here.

She said: "Canara Bank with the merger with Syndicate Bank will be the fourth largest Public Sector Bank with business of Rs 15.20 lakh crores."

Speaking further on mergers, she said: "Union Bank of India, with Andhra Bank and Corporation Bank shall become the fifth largest public sector bank now."

Nirmala Sitharaman on Friday said 14 public sector banks are in a profit earning situation in the current financial year.

"In this financial year, 14 public sector banks are in a profit-earning situation out of 18, " she said while addressing a press conference here.

She said: "No retrenchment has taken place post merger of Bank of Baroda, Dena Bank and Vijaya Bank; staff has been redeployed and best practices in each bank have been replicated in others."

" Indian economy is $2.6 trillion of which $1.9 trillion is credit," she said.

SItharaman said the move of consolidating Bank of Baroda, Vijaya Bank and Dena Bank has brought about wide-ranging benefits.

"4 NBFCs have found their liquidity solutions through PSBs since last friday with more in pipeline," she said.

She announced that record levels of loan recovery have been reached.

"Rs 1.21 lakh crores has been recovered," she said.