New Delhi: Union Finance Minister Nirmala Sitaraman announced the merger of nationalized banks at a consolidation of 12 instead of 27. Speaking to media persons on Friday, he said that the second largest merger in the banking sector is Punjab National Bank, Oriental Bank of Commerce and United Bank with a business of Rs. 17.95 lakh crores, 1.5 times the size of Punjab National Bank.

        Three more such mergers were announced as the Finance Minister said the government wants a strong financial system to clear the path towards making India a $ 5 trillion economy. The Finance Minister announced that another merger is Canara bank with Syndicate bank and Union Bank of India.

        Another merger is Andhra Bank and Corporation bank, Indian Bank will merge wills Allahabad Bank. These banks will hold business with Rs. 55.85 lakh crores. The Finance Minister said that the steps to empower the public sector a board committee of nationalized banks will appraise the performance of General Managers and higher positions. She also announced that chief risk officers will be recruited at market linked compensation to attract best available talent, for the first time in the banks.

        She also said that loan recoveries have reached a recovery level of Rs. 121.076 crores. Gross NPA’s are bad loans have come down from Rs. 8.65 lakh crores to Rs. Rs. 7.90 lakh crores.