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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

Nirmala Sitharaman

FM Nirmala Sitharaman | Photo: ANI (Twitter)

Suvashree Ghosh | Bloomberg
India is merging its state-run banks 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, Oriental Bank of Commerce and United Bank of India will combine to form the nation’s second-largest lender, Finance Minister Nirmala Sitharaman said at a briefing in New Delhi on Friday. Canara Bank will join Syndicate Bank; Union Bank of India with Andhra Bank and Corporation Bank; and Indian Bank with Allahabad Bank. Together, they will hold business worth Rs 55.8 trillion.

News of the mergers comes minutes before

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First Published: Aug 30 2019 | 4:54 PM IST

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