Finance Minister Nirmala Sitharaman has on Friday said 'saaho' to the idea of public sector banks mergers. Twenty-seven PSBs now become just 12 with 10 nationalized banks merging to become 4.

"Punjab National Bank, Oriental Bank of Commerce and United Bank will be brought together and they shall form the second largest public sector bank with a business of Rs 17.95 lakh crore. Canara Bank gets merged with Syndicate Bank and will be the fourth largest Public Sector Bank with a business of Rs 15.20 lakh crore. Union Bank of India merges with Andhra Bank and Corporation Bank and the entity will become the fifth-largest public sector bank now. Indian Bank merges with Allahabad Bank, they will be the seventh-largest PSB with a business of Rs 8.08 lakh crore," the Finance Minister said.

"We shall continue with two banks which will have a national presence. Bank of India with Rs 9.3 lakh crore of business size and Central Bank with Rs 4.68 lakh crore of business size will continue," she added.

The amalgamation process has been defended by the government. "There has been no retrenchment so far. There is no chance of retrenchment. The benefits of employment will improve with amalgamation," the Finance Secretary said.