FM Nirmala Sitharaman to meet heads of public sector banks today

New Delhi:  Finance minister Nirmala Sitharaman will meet heads of public sector banks (PSBs) on Thursday.

Sitharaman is expected to discuss issues related to softening of lending rates by banks. Among several other key discussions, the FM may also seek for status over passing of the benefits of RBI's rate cut to common people, online loan application, working towards better transparency in one-time settlement policy.

The meeting assumes importance as this will be her first meeting with PSB heads after she announced amalgamation of 10 public sector banks into on August 30.

After the amalgamation, only 12 PSBs will be left in India from the 27 earlier.

Sitharaman had said Punjb National Bank, Oriental Bank and United Bank will be merged to become the second largest PSU Bank in India. Canara Bank and Syndicate Bank will be merged into one entity to be 4th largest PSB, while Union Bank of India, Andhra Bank and Corporation Bank will be amalgamated into a single entity to be the 5th largest PSB; and Indian Bank and Allahabad Bank will become one entity to be the 7th largest PSB. The Finance Minister further said that the Bank of India and Central Bank of India would remain independent.  

Punjab National Bank will become the second largest PSB in India with a total business of Rs 17.5 lakh crore post the merger while that of the Canara Bank and Syndicate Bank will be Rs 15.20 lakh crore. Consolidated Union, Andhra and Corporation Banks will have a total business of Rs 14.6 lakh crore while consolidated Indian and Allahabad Banks will have a total business of Rs 8.08 lakh crore.

Meanwhile, four banking unions – All India Bank Officers' Confederation (AIBOC), All India Bank Officers' Association (AIBOA), Indian National Bank Officers' Congress (INBOC), National Organisation of Bank Officers (NOBO) – have called for a strike following announcement on amalgamation of banks.

These banking unions have threatened to go on a two-day strike between September 26 and September 27 to protest against the merger.