Bank Mergers in India List Out Now! Know all about this major decision!

Bank Mergers in India List Out Now! Know all about this major decision!

To assist the needs of being a $5 Trillion Economy by the year 2025 and to empower the nationalized banks to become global players, on 30th August 2019, Finance Minister of India Nirmala Sitharaman announced the biggest banking reform that our country has seen in the last 50 years - Mega Bank Mergers. After this reform, 10 major public sector banks will be merged into to create 4 separate entities to create a better banking structure and to revive the economy.

The ten banks that have been merged are Punjab National Bank, Oriental Bank of Commerce, United Bank, Canara Bank, Syndicate Bank, Union Bank of India, Andhra Bank, Corporation Bank, Allahabad Bank, and Indian Bank. Before the bank mergers in India list wasn’t out, there were a total of 27 Public Sector Banks in our country that has reduced to a total of 12 after the merger.

You’ll get to know extensively about the ​bank mergers in India list​ in this article so that you can know what’s the current position of banks that have merged and which bank has merged into which bank? To get answers to all these questions, read on!

What are the highlights of Bank Mergers in India List?

After the historical banks’ merger thing happened, there were only 6 Public sector banks in India that remained untouched. These are Indian Overseas Bank, Bank of Maharashtra, UCO Bank, Punjab and Sind Bank, Bank of India, and Central Bank. The first four remain untouched because of the extensive regional focus they got. According to the Finance Minister, all the banks that have merged have got a similar banking style so there will be no disruption in the functioning. The b ​ ank mergers​ in India list are given below where you can see the exact details of the banks that got merge with each other.

1. The merger of Punjab National Bank with Oriental Bank of Commerce and United Bank:

After this merger, Punjab National Bank will be the second-largest lender of the country after the State Bank of India. In terms of total branches in India, it will also be the second-largest with having 11,437 branches and a total business of INR 17.95 lakh crore.

2. The merger of Canara Bank with Syndicate Bank

This merger will give us the fourth-largest public sector bank of our country with having a total of 10,342 branches across the country. The merged entity will have a net business of INR 15.20 lakh crore.

3. The merger of Union Bank of India with Canara Bank and Corporation Bank

This merger will result in getting our country the fifth-largest lender of our country with having a branch network of 9609 branches, 75384 employees, and also a net business of INR 14.59 lakh crore.

4. The merger of Indian Bank and Allahabad Bank

Due to the equivalent network of both the banks, this merger will only scale up the business. After this merger, it will be the seventh-largest public sector bank with having a net business of INR 8.08 lakh crore.

This merger will help in reducing the cost of banking operations, risk management and the overall NPAs (Non-Performing Assets) of banks. This bank mergers will help the regionally focused banks to expand their presence across India. It will also help Indian banks to achieve a greater global presence.