The Union Ministry of Finance on Friday announced merger of 10 public sector banks (PSBs) into four entities.

Union Finance Minister Nirmala Sitharaman announced that Canara Bank and Syndicate Bank will be merged into one entity while Andhra Bank and Corporation Bank will be integrated into a single unit. Allahabad Bank and Indian Bank will become one entity.

Sitharaman however said that Central Bank of India and Bank of India will remain autonomous.

Finance Secretary Rajeev Kumar said that government will hold 51 per cent stake in public sector undertaking (PSU) banks.

“PSU banks do a lot for the general public. The government will keep its stake at 51 per cent in the nationalised banks,” Kumar said after the announcement of the merger of PSU banks.

—India Legal Bureau