There is no specific proposal to amalgamate more public sector banks which is currently under consideration of the government, the Minister of State (MoS) for Finance informed the Lok Sabha on Monday.

After consulting the Reserve Bank of India (RBI), the government approved that respective board of public sector banks may consider amalgamation, the minister said in a written reply in Lok Sabha.

The government is currently not considering any specific proposal to amalgamate more public sector banks, the minister said.

After taking the inputs of the RBI and in-principle approval and inputs of banks, the government amalgamated Vijaya Bank and Dena Bank into Bank of Baroda with effect from 1 April 2019. Similarly, Oriental Bank of Commerce and United Bank of India were amalgamated into Punjab National Bank; Andhra Bank and Corporation Bank into Union Bank of India; Syndicate Bank into Canara Bank; and Allahabad Bank into Indian Bank. These amalgamations came into effect from 1 April 2020.