SBI, PNB, BOB Bank Update: The next major merger plan for public sector banks has begun. The Finance Ministry is considering merging Union Bank of India and Bank of India. If this proposal is approved, the country will have the second-largest public sector bank after SBI. This time, the government does not want to limit itself to mergers; it is also taking steps to change the systems, working methods, and controls of PSU banks. The question now arises: which bank could be merged with which?
Which bank will be merged with which?
The government wants to merge the remaining PSU banks to form larger banks.
The first option is to merge smaller public sector banks (UCO Bank, Central Bank of India, Indian Overseas Bank, Bank of Maharashtra) with Bank of India. Bank of India is the largest in this group (a book size of 6 lakh crore or more).
Second Option
Banks could be merged based on technology or region. -UCO Bank and Central Bank -Punjab National Bank
-Bank of India -Union Bank
-Indian Overseas Bank -Indian Bank
Third Option – If the goal is simply “size,” then the merger of Bank of India and Union Bank is the best option.
According to media reports, in the second phase of the bank merger plan, Indian Overseas Bank, Central Bank of India, Bank of India, and Bank of Maharashtra could be merged with larger banks like Punjab National Bank (PNB), Bank of Baroda (BOB), and State Bank of India (SBI).
In 2017, five associate banks of SBI and Bharatiya Mahila Bank were merged with the State Bank of India.
In 2019, Vijaya Bank and Dena Bank were merged with Bank of Baroda.
In 2020, Oriental Bank of Commerce and United Bank of India were merged with Punjab National Bank.