You are here: Home » Finance » News » Banks
Business Standard

Government creates banking behemoths to boost India's flagging economy

News of the mergers comes minutes before official data is expected to confirm a fifth-straight quarter of slowing economic growth

Suvashree Ghosh | Bloomberg 

Nirmala Sitharaman
FM Nirmala Sitharaman | Photo: ANI (Twitter)
BS POLL
Will the proposed merger of ten public sector banks foster efficiency in the Indian banking sector?
Submit
VIEW ALL POLLS

India is merging its state-run to form fewer and stronger lenders, as Prime Minister Narendra Modi looks to boost credit and revive economic growth from a five-year low.

Punjab National Bank, and will combine to form the nation’s second-largest lender, Minister said at a briefing in New Delhi on Friday. will join Syndicate Bank; with and Corporation Bank; and Indian Bank with Together, they will hold business worth Rs 55.8 trillion.

News of the mergers comes minutes before official data is expected to confirm a fifth-straight quarter of slowing economic growth. Soured debt of about $130 billion, much of it on the books of state-run banks, had been curbing fresh lending, restricting scope for a revival in investment.

Last year, government helped facilitate a merger of Dena Bank and Vijaya Bank with Bank of Baroda, creating the third-largest bank by loans in the country.

First Published: Fri, August 30 2019. 16:54 IST
RECOMMENDED FOR YOU