Similarly, Indian Bank and Allahabad Bank will become one entity.
The Finance Minister further said that the Bank of India and Central Bank of India would remain independent.
After the amalgamation, only 12 PSBs will be left in India from the 27 earlier.
Consequent to the merger, Punjab National Bank will become the second largest PSB in India with a total business of Rs 17.5 lakh crore.
Additionally, the total business of the merged entity of Canara Bank and Syndicate Bank will be Rs 15.20 lakh crore. It will become the fourth largest PSB in the country.