Ten Public Sector Undertaking (PSU) banks will be amalgamated into four banks from tomorrow, 1 April. In the biggest consolidation exercise in the banking space, the government in August 2019 had announced the merger of 10 public sector lenders into four bigger and stronger banks.
With this, the number of public sector banks in India will come down to 12 from 27 in 2017. It was widely speculated that the government may defer the consolidation exercise for some time due to the novel coronavirus pandemic that has impacted our economy. Here is all you need to know about the mega merger of PSU banks that will come into force from 1 April: 1) Oriental Bank of Commerce (OBC) and United Bank of India will be merged into Punjab National Bank