Bank recap: PNB to get Rs 16,000 crore, Union Bank Rs 11,700 crore
Among other banks, Bank of Baroda will receive Rs 7,000 crore in recapitalisation.
By ETMarkets.com | Updated:
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NEW DELHI: Finance Minister Nirmala Sitharaman on Friday said PNB and Union Bank of India will be among banks, which will be recapitalised under the Rs 70,000 crore recapitalisation plan she announced last week.
PNB will receive Rs 16,000 crore, followed by Union Bank which will get Rs 11,700 crore. The news followed the government announcement of merging of Oriental Bank of Commerce and United Bank with PNB.
The development would create the second biggest PSU Bank with a business of Rs 17.95 lakh crore.
Union Bank too will be merged with Andhra Bank and Corporation Bank will create fifth largest bank with Rs 14.59 lakh crore business.
The merged entity will have fourth largest branch network of 9,609 branches.
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Canara Bank, which will be merged with Syndicate Bank, will get Rs 6500 crore in capitalisation.
The merger will create the fourth largest bank with a business of Rs 15.20 lakh crore, which is 1.5 times Canara Bank at present.
The merged entity will have the third largest branch network in India with 10342 branches.
Among other banks, Bank of Baroda will receive Rs 7,000 crore in recapitalisation. Indian Overseas Bank (Rs 3,800 crore), UCO Bank (Rs 2,100 crore) and Central Bank (Rs 3,300 crore) will also get capitalised.
