Finance minister, Nirmala Sitharaman had announced the merging of 10 public sector (PSU) banks into four mega state-owned banks. These banks will be amalgamated to four mega PSU banks will come into effect tomorrow, i.e. April 1. The government had announced the merger in August 2019 but now due to the coronavirus it was speculated that the government may postpone the merger. The banks involved in the merger are:
- United Bank of India (UBI) and Oriental Bank of Commerce (OBC) will merge with Punjab National Bank (PNB) which will make it the second largest public sector bank.
- Syndicate Bank will be merged with Canara Bank, and Allahabad Bank with Indian Bank.
- Andhra Bank and Corporation Bank will be merged with Union Bank of India.