Merger of 10 Public Sector Banks
Ten Public Sector Undertaking (PSU) banks will be amalgamated into four banks from , 1 April. With this, the number of public sector banks in India will come down to 12 from 27 in 2017.
- Oriental Bank of Commerce (OBC) and United Bank of India will be merged into Punjab National Bank (PNB). After the merger, these together will form the second-largest public sector bank in the country, after State Bank of India (SBI).
- Syndicate Bank will be merged into Canara Bank, which will make it the fourth-largest public sector lender.
- Indian Bank will be merged with Allahabad Bank.
- Union Bank of India will be merged with Andhra Bank and Corporation Bank.
Customers, including depositors of merging banks will be treated as customers of the banks in which these banks have been merged with effect from 1 April 2020.
After the merger, there will be 12 PSUs – six merged banks and six independent public sector banks.
Six merged banks – SBI, Bank of Baroda, Punjab National Bank, Canara Bank, Union Bank of India, Indian Bank
Six Independent banks – Indian Overseas Bank, Uco Bank, Bank of Maharashtra, Punjab and Sind Bank, Bank of India, Central Bank of India.