- Punjab National Bank, Oriental Bank of Commerce and United Bank will be merged to create a business of ₹7.95 trillion
- Other mergers include: Canara Bank with Syndicate Bank; Union Bank with Andhra Bank and Corporation Bank; Indian Bank with Allahabad Bank
Finance minister Nirmala Sitharaman on Friday announced the merger of Punjab National Bank, Oriental Bank of Commerce and United Bank with business of ₹7.95 trillion to make India’s second-largest bank, a week after announcing a slew of measures to boost consumer and investment confidence.
The other merger will be between Canara Bank and Syndicate Bank, which will make the fourth-largest bank, with ₹15.2 trillion business.
Also, Union Bank will be merged with Andhra Bank and Corporation Bank to build India’s fifth-largest public sector bank with ₹14.59 trillion in business.
Indian Bank will be merged with Allahabad Bank to make India’s seventh-largest PSB with a business of ₹8.08 trillion.
Sitharaman said the earlier merger of Bank of Baroda, Vijaya Bank and Dena Bank led to enhanced customization and rationalization of operations without any retrenchment. CASA (current and savings account) growth is 6.9% in the June quarter; retail loan growth is 20.5%, while profitability is around ₹710 crore.
Source: Livemint
