Banks’ merger to come into effect from April 1
Tribune News Service
New Delhi, March 4
Nod to amalgamation scheme
- Currently, India has 18 public sector banks, down from 27 in 2017. From April 1, the total number of banks will be 12 with every bank service remaining intact after the merger
PNB, Oriental Bank and United Bank will form the country’s second largest public sector bank after the SBI
AdvertisementThe merger of Canara Bank and Syndicate Bank will make it the fourth-largest bank
Union Bank’s merger with Andhra Bank and Corporation Bank will make it the fifth-largest bank while Indian Bank’s merger with Allahabad Bank will make it the country’s seventh-largest public sector bank
The Union Cabinet today approved the merger of 10 public sector banks (PSBs) into four. The decision will take effect from April 1, Union Finance Minister Nirmala Sitharaman told mediapersons after the Cabinet meeting.
Currently, India has 18 public sector banks, down from 27 in 2017. From April 1, the total number of banks will be 12 with every bank service remaining intact after the merger, said Sitharaman.
“Banks have submitted the scheme of amalgamation, which the Cabinet has approved today,” she said.
The decision for the second round of mega merger of PSU banks was announced in August last year as one of the measures to beat the economic slowdown.
From April 1, Punjab National Bank, Oriental Bank of Commerce and United Bank will form the country’s second largest public sector bank after the State Bank of India. The merger of Canara Bank and Syndicate Bank will make it the fourth-largest bank. Union Bank’s merger with Andhra Bank and Corporation Bank will make it the fifth-largest bank while Indian Bank’s merger with Allahabad Bank will make it the country’s seventh-largest public sector bank.
Sitharaman also said the government has looked at BoB’s merger with Dena Bank and Vijaya Bank to understand if any lesson has to be learnt from that.
