SBI, PNB, BOB Bank: The central government is rapidly preparing for a major merger of public sector banks. The Finance Ministry is considering merging Union Bank of India and Bank of India. The government’s goal is to create a strong, competitive, and globally competent banking system by merging smaller banks. These banks include Union Bank of India and Bank of India. According to media reports, the government’s merger plan may involve merging four public sector banks into larger entities. Under this major merger, the government may merge the Indian Overseas Bank, the Central Bank of India, the Bank of India, and the Bank of Maharashtra. Finance Minister Nirmala Sitharaman recently hinted at the merger of public sector banks at the 12th SBI Banking and Economics Conclave.
In August 2019, the government announced the merger of four large public sector banks, reducing their number from 27 in 2017 to just 12. This merger took effect on April 1, 2020. United Bank of India and Oriental Bank of Commerce were merged with Punjab National Bank. Syndicate Bank was merged with Canara Bank, and Allahabad Bank with Indian Bank; Andhra Bank and Corporation Bank were merged with Union Bank of India. Earlier in 2019, Dena Bank and Vijaya Bank were merged with Bank of Baroda.
How many banks will remain?
If the government’s merger plan is completed within the stipulated timeframe, the number of public sector banks in the country will be reduced. Only four public sector banks will remain in the country. After this major merger, only SBI, PNB, BoB, and Canara Bank will stay in India.
Under Bank Merger 2.0, Indian Overseas Bank (IOB), Central Bank of India (CBI), Bank of India (BOI), and Bank of Maharashtra (BOM) could be merged with larger banks like Punjab National Bank (PNB), Bank of Baroda (BOB), and State Bank of India (SBI).