The government had announced the proposal to merge the state-run lenders on August 30, 2019.
The Cabinet may approve the planned amalgamation of 10 state-run banks into four on February 5, Business Standard reported.
The merger of the lenders’ balance sheets, as per the proposal, is expected to be complete by April 1.
The proposal will lower the number of public sector banks (PSBs) in the country to 12 from 27.
Moneycontrol could not independently verify the story.
Punjab National Bank (PNB) will merge with United Bank of India and Oriental Bank of Commerce (OBC), while Canara Bank will amalgamate with Syndicate Bank. Union Bank of India will be merged with Andhra Bank and Corporation Bank, while Indian Bank will be combined with Allahabad Bank.
PNB, Union Bank of India, Canara Bank and Indian Bank are the four anchor banks.
The government had announced the proposal on August 30, 2019.The government has infused over Rs 3.5 lakh crore into PSBs over the past five years, Finance Minister Nirmala Sitharaman said during Union Budget 2020.