On August 30, 2019 , In the biggest consolidation exercise in the banking space, the Finance Minister Nirmala Sitharaman has made a big announcement that the formation of four large banks by merging 10 banks under the scheme of amalgamation. The decision aimed at making state-owned lenders global sized banks.
With this, the number of public sector banks will be 12 as against 27 in the year 2017.
Key points:
Here is the list of 10 public sector banks(PSB) which merged into four:
| Anchor bank | Amalgamating bank (s) | Business size (Rs lakh cr) | PSB rank by size |
| PNB(Punjab National bank) | Oriental Bank of Commerce(OBC) | 17.94 | 2nd  largest |
| United Bank of India | |||
| Canara Bank | Syndicate Bank | 15.20 | 4th  largest |
| Union Bank of India | Andhra Bank | 14.59 | 5th  largest |
| Corporation Bank | |||
| Indian Bank | Allahabad Bank | 8.08 | 7th  largest |
i. Earlier, the government had merged Dena Bank and Vijaya Bank with Bank of Baroda(BoB). Even before this, the government merged five associate banks of State Bank and Mahila Bank of India into State Bank of India (SBI).
ii. PNB will get Rs 16,000 crore capital from the government to complete the merging exercise.
iii. Canara Bank, with lower gross NPA (Non Performing Assets) ratio of 8.77 %, will get about Rs 6,500 crore capital from the centre.
iv.  Union Bank has a high Net NPA ratio of 6.85 %. It will get Rs 11,700 crore from the government for the merger process.
v. Indian Bank had a net NPA ratio of 3.75 % & it will get Rs 2,500 crore worth capital from the government to complete the merger.
Govt announces upfront capital infusion of Rs 55250 crore in PSBs
In order to boost the economy, the centre also announced capital infusion of amounting  of Rs 55250 crore into PSBs: It includes,
| S.No | Bank Name | Capital infusion |
| 1 | PNB (Punjab National Bank ) | ₹16,000 crore |
| 2 | Union Bank of India | ₹11,700 crore |
| 3 | Bank of Baroda | ₹7000 crore |
| 4 | Indian Bank | ₹2500 crore |
| 5 | Indian Overseas Bank | ₹3800 crore |
| 6 | Central Bank of India | ₹3300 crore |
| 7 | UCO Bank | ₹2100 crore |
| 8 | United Bank | ₹1,600 crore |
| 9 | Punjab and Sind Bank | ₹750 crore |
10      Canara Bank                  Rs 6500 crore
Key points:
i The Centre had earlier announced steps to help Non-Banking Financial Companies (NBFCs) & Housing Finance Companies (HFCs) that to assure the additional liquidity support of Rs. 20,000 crore by NHB(National Housing Bank), collecting the total to Rs. 30,000 crore to support HFCs.
ii. As a part of the Rs. 1-trillion scheme that was announced for reviving liquidity in the NBFCs, the government will give a one-time 6-month partial credit guarantee to PSBs for the 1st  loss of up to 10 % for the purchase of high-rated assets.
PSBs total gross NPAs come down to Rs 7.9 lakh crore:Â Nirmala Sitharaman
Finance Minister Nirmala Sitharaman stated that the total gross NPAs of Public Sector Banks(PSBs) have come down to Rs. 7.9 lakh crore in March quarter of the FY 20(Fiscal year 2019-20), from Rs. 8.65 lakh crore in the previous December quarter of FY 2019(FY 2018-19). Out of total 18 public sector banks only 14 are in profit-earning situation at this time.
About NPA:
A non performing asset (NPA) is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days.
About Ministry of Finance:
Founded: 29 October 1946
Headquarters: New Delhi