Nirmala Sitharaman anunced major reforms for Public Sector Banks on Friday, in continuation of measures anunced with a view to bringing ecomy back on track and on its way to meeting PM Modi's $5 trillion target. In her media briefing, she confirmed merger 10 Public sector banks into 4 big PSBs. Finance Minister also said that having strong governance is very important and indicated governance reforms for Public Sector Banks. She also focused on reforms in big loans process.

Finance Secretary Rajeev Kumar tweeted about various governance reforms for PSU banks to achieve $5 trillion ecomies.

Key takeaways from Finance Minister's reform measures anunced on Friday.

1. 4 PSU bank mergers anunced

 Punjab National Bank, Oriental Bank Of Commerce and United Bank of India
 Canara Bank and Syndicate Bank
 Indian Bank and  Allahab bank  
 Union Bank, Andhra Bank and Corporation Bank

2. Retrenchment in Banks

Department of Financial Services Secretary Rajeev Kumar said re are chances of retrenchment in banks as part of merger process. He said Government was inste focusing on improving employee benefits due to mergers. 

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3. Capital Infusion for PSBs

Nirmala Sitharaman anunced  approximate capital that will be infused in state-run banks: 

• Punjab National Bank- Rs. 16,000 crore
• Union Bank of India- Rs 11,700 crore
• Bank of Baroda- Rs 7000 crore
• Canara Bank- Rs 6500 crore
• Indian Bank- Rs 2,500 crore
• Indian Overseas Bank- Rs 3,800 crores
• Central Bank of India- Rs 3,300 crore
• UCO Bank- Rs 2,100 crore
• United Bank- Rs 1,600 crore
• Punjab and Sind Bank- Rs 750 crore

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Implementation of bank mergers has alrey begun says Finance Minister

Finance Minister said that implementation of bank reforms h alrey begun, as some measures that were anunced a week earlier are alrey being implemented. She anunced some reforms such as removal of a tax surcharge on foreign office portfolios and recapitalization plans for banks worth Rs 70,000 crores. She also said that focus was on reviving automobile industry last week.

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