Finance Minister Nirmala Sitharaman yesterday (30th August) announced a big merger of public sector banks. Under the scheme, 10 banks will get merged into 4. Below are some details to help you understand easily:
- Indian Bank will be merged with Allahabad Bank (anchor bank – Indian Bank)
- PNB, OBC and United Bank to be merged (anchor bank- PNB)
- Union Bank of India, Andhra Bank and Corporation Bank to be merged (anchor bank – Union Bank of India)
- Canara Bank and Syndicate Bank to be merged (anchor bank – Canara Bank).
So, the 27 public sector banks in 2017 will now become 12 public sector banks after the latest round of consolidation of PSU banks. This will give them scale, the finance minister said.
Talking about the infused amount for growth, Nirmala Sitharaman gave an idea about the money to be provided. Here the list:
- Union Bank of India: Rs 11,700 crore
- UCO Bank: Rs 2,100 crore
- Punjab National Bank: Rs 16,000 crore
- Canara Bank: Rs 6,500 crore
- Central Bank of India: Rs 3,300 crore
- Bank of Baroda: Rs 7,000 crore
- Punjab & Sind Bank: Rs 750 crore
- United Bank: Rs 1,600 crore
- Indian Overseas Bank: Rs 3,800 crore
- Indian Bank: Rs 2,500 crore
This is not the first case when we are seeing such mergers. Last year, there was a merger of Vijaya Bank and Dena Bank with Bank of Baroda (BoB) that started its operation from April 1, 2019. In 2017, SBI merged five of its associates and the Bharatiya Mahila Bank.
It will be interesting to see how the stocks of these banks perform after the merger. Share our views in the comments section.
Also Read: 8 Biggest Mergers And Acquisitions Of 2017
