Bank Merger News Update – The merger of smaller banks with larger ones is becoming a trend. Bank mergers have been in the news in India for quite some time, and continue to be. The central government now wants to create world-class public sector banks that can gain recognition globally. The government’s goal is to merge smaller public sector banks to make them stronger and capable of operating at a larger scale, thus reducing significant inconvenience to account holders.
SBI, the largest public sector bank, has also expressed its support for this upcoming merger. SBI has stated its support for increasing market value and reducing NPAs, strengthening digital capabilities, and increasing global competitiveness. The question is, who are the expected mergers?
Know who will be the next?
Discussions about merging smaller public sector banks are once again gaining momentum. Find out which banks have been merged. According to a report, these are Bank of India, Indian Overseas Bank, Central Bank of India, Bank of Maharashtra, UCO Bank, and Punjab & Sind Bank.
According to reports, these banks may merge in the future and may be absorbed into larger PSU banks. Between 1993 and 2025, India has experienced several major mergers in the banking sector.
These mergers have played a key role in increasing capital capacity, strengthening credit support, improving technology, reducing operating costs, and enhancing risk diversification. The largest such merger occurred in 2017.
SBI merged its five associate banks: Banks of Bikaner and Jaipur, Hyderabad, Patiala, Mysore and Travancore, and Bharatiya Mahila Bank. This merger has made SBI India’s largest public sector bank. In 2019, Bank of Baroda underwent a three-way merger with Vijaya Bank and Dena Bank.
These banks merged in 2020
Several major bank mergers also took place in April 2020. During this period, PNB merged Oriental Bank of Commerce and United Bank of India, becoming the second-largest PSU bank in the country by branch network.
Two significant mergers took place during this period. Canara Bank acquired Syndicate Bank, becoming the fourth-largest PSU bank. Union Bank of India merged Andhra Bank and Corporation Bank to form the fifth-largest public sector bank.
