10 Public Sector Banks Mega Merger: Finance minister Nirmala Sitharaman on 30th August 2019 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. After the amalgamation, only 12 PSBs will be left in India from the 27 earlier.
Here are the key points regarding these mergers:
Consolidated PNB+OBC+United Bank to be 2nd largest PSB with Rs 18 lakh crore business and 2nd largest branch network in India. Scale, nationwide & global presence, and high CASA to drive growth.
Consolidated Indian & Allahabad Banks to be 7th largest PSB with Rs 8.08 lakh crore business. Strong scale benefits to both with business doubling. High CASA & lending capacity combined in consolidated bank.
Consolidated Union+Andhra+Corporation Banks to be 5th largest PSB with Rs 14.6L Cr. business & 4th largest branch network in India. Strong scale benefits to all 3 with biz becoming 2 to 4½ times that of individual bank.
Who got what: 10 PSBs will get a total of Rs 55,250 crore.
Punjab National Bank — Rs 16,000 crore
Union Bank of India — Rs 11,700 crore
Bank of Baroda — Rs 7,000 crore
Canara Bank — Rs 6,500 crore
Indian Bank — Rs 2,500 crore
Indian Overseas Bank — Rs 3,800 crore
Central Bank of India — 3,300 crore
UCO Bank — Rs 2,100 crore
United Bank of India — Rs 1,600 crore
Punjab & Sind Bank — Rs 750 crore