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BANK MERGER Why in news? Recently government announced to merge 10 state-owned banks to create four large banks. More in News • Under the plan, Oriental Bank of Commerce and United Bank of India will be merged with Punjab National Bank; Canara Bank with Syndicate Bank; Andhra Bank and Corporation Bank with Union Bank of India; and Allahabad Bank with Indian Bank. • This merger would bring number of public schedule bank in India from 27 before 2017, to 12. Benefits of Bank Merger • Global Banks: Big Indian Banks can slowly and gradually transform themselves into global banks. With consolidation, the Indian banks will gain greater recognition and higher rating in the global market. • Risk management and large loans: Merger will result in better NPA and Risk management. Also, Banks will not be reluctant to approve big loans to averse the risk. • Customer service: Larger size of the Bank will help the merged banks to offer more products and services