Merger of Public Sector Banks
The government has unveiled a mega plan to merge 10 public sector banks into four as part of plans to create fewer and stronger global-sized lenders.
- Punjab National Bank, Oriental Bank of Commerce and United Bank of India will combine to form the nation’s second-largest lender.
- Canara Bank and Syndicate Bank will merge.
- Union Bank of India will amalgamate with Andhra Bank and Corporation Bank.
- Indian Bank will merge with Allahabad Bank.
Size of New Banks
- The merger of Oriental Bank of Commerce and United Bank into Punjab National Bank will create a bank with ₹95 lakh crore business and 11,437 branches.
- The merger of Syndicate Bank with Canara Bank will create the fourth-largest public sector bank with ₹20 lakh crore business and a branch network of 10,324.
- The merger of Andhra Bank and Corporation Bank with Union Bank of India will create India’s fifth-largest public sector bank with ₹59 lakh crore business and 9,609 branches.
- The merger of Allahabad Bank with Indian Bank will create the seventh-largest public sector bank with ₹08 lakh crore business.
Banks which would remain Independent
- Banks such as Indian Overseas Bank, Uco Bank, Bank of Maharashtra and Punjab and Sind Bank which have strong regional focus will continue as separate entities.
- Bank of India and Central Bank of India will also continue to operate separately.
After the proposed mergers India will have 12 public sector banks, including State Bank of India and Bank of Baroda (Dena Bank and Vijaya Bank with Bank of Baroda last year).
Topics: Allahabad Bank • Bank of Baroda • Canara Bank • Companies • Dena Bank • Economy of India • Financial services • Indian Overseas Bank • Mega Merger of Banks • National bank • Public Sector Banks • Public Sector Banks in India • State Bank of India • Syndicate Bank