IOB, BOI, BOM, Central Bank, UCO, PSB Merger: The Indian government is planning significant changes in the banking sector. As part of this, the government is preparing for a mega bank merger. According to media reports, the government is considering merging smaller public sector banks with larger ones, based on the recommendation of the NITI Aayog. This mega merger could involve the merger of Indian Overseas Bank, Central Bank of India, Bank of India, and Bank of Maharashtra. A decision on the merger of six PSU banks is currently pending. The main objectives of the bank merger include strengthening financial books, reducing bad debt, and promoting digital and physical infrastructure.
Customers may face several difficulties after a bank merger. After the merger, they will have to prepare all the relevant documents for the new banks, which will increase their workload. However, in such situations, the bank also provides convenience to customers and tries to save them from trouble.
Which Banks Are Not Merged?
Bank of India, Indian Overseas Bank, Central Bank of India, Bank of Maharashtra, UCO Bank & Punjab & Sind Bank
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.
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
