<h1>Government Consolidates Public Sector Banks: Merges 27 to 12 by 2019; Rs. 70,000 Crore Capital Infusion Announced.</h1> The government announced a major consolidation of public sector banks, reducing their number from 27 in 2017 to 12. United Bank of India and Oriental Bank of Commerce will merge with Punjab National Bank, making it the second largest public sector bank. Syndicate Bank will merge with Canara Bank, Allahabad Bank with Indian Bank, and Andhra Bank and Corporation Bank with Union Bank of India. The government will provide adequate capital, with a Rs. 70,000 crore infusion for the current fiscal. The mergers aim to create globally competitive banks, and no employee retrenchment is expected. Some banks will maintain their regional focus.