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Market Cap £1.25bn
Enterprise Value £2.74bn
Revenue £1.95bn
Position in Universe 249th / 3107

India announces series of mergers of state-run banks

Fri 30th August, 2019 1:10pm
By Mayank Bhardwaj
    NEW DELHI, Aug 30 (Reuters) - India announced a series of
mergers involving 10 state-owned banks on Friday, as it moves to
strengthen a sector struggling under a mountain of debt and
ensure stronger balance sheets to boost lending and revive
economic growth.
    The mergers, which cut to 12 the total number of state-owned
banks, from 27 in 2017, are the first since Prime Minister
Narendra Modi's government won re-election in May. His
government has vowed to clean up the banking sector and reduce
the number of state-run banks. 
    Finance Minister Nirmala Sitharaman said Oriental Bank of
Commerce  ORBC.NS  and United Bank  UBOI.NS  would be merged
with New Delhi-headquartered Punjab National Bank  PNBK.NS ,
creating India's second largest lender after State Bank of India
 SBI.NS . 
    The government also announced that two lenders based in
southern India, Canara Bank  CNBK.NS  and Syndicate Bank
 SBNK.NS , would be amalgamated.
    In addition, Andhra Bank  ADBK.NS  and Corporation Bank
 CRBK.NS  are to merge with Union Bank  UBOI.NS , while Indian
Bank  INBA.NS  will merged with Allahabad Bank. 
    "We're trying to build the NextGen banks," Sitharaman told a
news conference.
    In 2017, the government merged State Bank of India  SBI.NS 
with its associate banks, and this year, it merged Bank of
Baroda  BOB.NS  with some smaller peers.
($1=71.4920 Indian rupees)

 (Reporting by Mayank Bhardwaj and Aftab Ahmed; Writing by Nupur
Anand and Euan Rocha;
Editing by Sanjeev Miglani and Clarence Fernandez)
 ((Aftab.Ahmed@thomsonreuters.com; +911149548060;))
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