Everything you need to know about the Merged Banks List in India

Everything you need to know about the Merged Banks List in India

On the 30th of August, 2019, the Government of India announced the biggest banking reform to revive the Indian economy and make our economy a $5 Trillion economy, to merge the 10 public sector banks into 4 major banks. The Indian economy has been at a five-year low since 2014, and this merger was needed to improve the overall banking structure of India and overall capital efficiency. In this article, we will tell you everything you need to know about the banking merger list in India.

What will happen after this ​merged banks list in India​ has launched, that the newly merged banks will have a much better risk appetite after the merger in comparison to them before when they were acting as the individual bank. Now, the government will have a reduced load of recapitalization to the banks. Now, having a few numbers of banks, the government can focus on them in a much better way.

What are the highlights of the Merged Bank List in India?

You can have a look at some of the major highlights of the mega-merger of banks mentioned below.

● After the merger, there are a total of 12 Public Sector Banks including the State Bank of India (SBI) and Bank of Baroda. Before merger, there were used to be a total of 27 Public sector banks. ● Oriental Bank of Commerce and the United Bank of India will be merged into the Punjab National Bank of India which will make PNB the second largest bank of India with the total business size of INR 17.94 lakh crore. ● Allahabad Bank will be merged into Indian Bank which will make the latter 7th largest lender of our country with a business size of INR 8.08 lakh crore. ● Canara Bank will be the 4th largest public sector bank of our country after being Syndicate Bank merged into it. The total business size will be INR 15.20 lakh crore. ● Andhra Bank and Corporation Bank will be merged into Union Bank of India making it the 5th largest PSB with a business value of INR 14.59 lakh crore. ● The six public sector banks that will remain independent are the Indian Overseas Bank, Bank of Maharashtra, UCO Bank, Punjab and Sind Bank, Bank of India, and Central Bank. ● After the ​merged banks​ list in India announcement, the government bank of India has said to infuse capital worth of INR 55,000 crore into the public sector banks.

What will be the benefits of the Merged Banks List in India announcement?

There are a number of benefits that this merger will result in. Firstly, it will help a lot in reviving the economy. You can have a look at the other mentioned below.

● Banks will have a better chance to create a pan India presence as there will be more branches of banks across India. ● Now, customers will have a better chance to get the larger loan amount because of the large capital base acquired by the bank. ● Banks will have a much better service delivery structure. ● Customers will have a wide range of banking products to choose from after the merger as banks will have much more products to offer than before. ● With fewer banks in the country, it will be possible to have better control over them and hence, it could function with much efficiency.