Next Big Bank Merger in India: This PSU Banks Under Government Watch

A bank merger is making headlines once more. A new committee for the merging of public sector banks may shortly be established by the finance minister, according to media sources.

The government may combine 12 state-run banks into five and increase their foreign participation cap to 49%, according to sources and media reports. M. Nagaraju, a former secretary of the Department of Financial Services (DFS), could lead the committee.

Foreign Direct Investment (FDI) in Public Sector Banks (PSBs) is currently capped at 20% and requires prior government approval. The government must maintain a minimum 51% shareholding to retain public control.

The 20% FDI is allowed strictly through the government approval route. Individual foreign shareholder voting rights are currently capped at 10% to prevent them from taking strategic management control. In contrast to PSBs, private sector banks allow up to 74% FDI (49% via the automatic route and up to 74% through the government route).

The Union budget for FY27 had proposed a committee to chart “Banking for Viksit Bharat,” aimed at improving efficiency, governance and competitiveness among PSBs.

Finance Minister Nirmala Sitharaman had said reforms will help align public sector banks “with India’s next phase of growth, while safeguarding financial stability, inclusion and consumer protection.”

The committee may comprise up to five members, including current DFS secretary Sanjay Lohiya. A former chairman of the State Bank of India and a former deputy governor of the Reserve Bank of India (RBI) are also being considered for the committee.

On 1 April 2020, the government merged 10 PSBs into four larger banks. Oriental Bank of Commerce and United Bank of India were amalgamated with Punjab National Bank; Allahabad Bank merged with Indian Bank; Syndicate Bank with Canara Bank; and Andhra Bank and Corporation Bank with Union Bank of India.

Earlier, in April 2019, Dena Bank and Vijaya Bank were merged with Bank of Baroda. The consolidation drive reduced the number of public sector banks from 27 in 2017 to 12 by 2020, aiming to improve operational efficiency, risk management, capital utilization and lending capacity.

The new committee may also recommend raising the foreign direct investment (FDI) cap of 20% in PSBs to as much as 49% to attract global capital and strengthen banks’ balance sheets.

Earlier, it was reported that the finance ministry is drawing up a fresh blueprint to merge select public sector banks.

There were discussions around a potential merger of Union Bank of India and Bank of India and merger of Indian Overseas Bank and Indian Bank.

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Bank of India(BOI) branch in Uttar Pradesh is missing gold

Following the disappearance of gold valued at crores from a bank locker in Firozabad, Uttar Pradesh, three persons were arrested on Thursday. The Bank of India has reported the event.

Customers of the bank pledged this gold as security for the gold loan they had obtained from the bank. 96 packets containing pledged gold were discovered missing from the bank's Bharaul branch locker, according to officials. When a client comes to the bank for a gold loan, he gives the bank his gold, which is then securely stored in a vault. Two Bank employees still have the keys to this vault.

Aditya Pratap Singh, the chief manager of the bank's Agra regional office, filed a formal complaint against three workers, including the branch manager at the time, at the Araon police station on Wednesday night.

After investigating in the matter, it was found that bank staff member and key custodian Dilip Kumar, a resident of Basgaon village in Etawah district, had been absent without information since May 27.

Suspicion arose after the bank failed to contact him. Following this, senior security manager Ankit and senior manager (security) of the Ghiror branch, Sushil Kumar, were sent to the Bharaul branch on June 15.

Police said a duplicate key was arranged and the locker was opened in the presence of the bank’s panel advocate Shiv Kumar Sharma with video recording. Officials found that 96 gold loan packets were missing from the locker.

Following this, an FIR has been registered against former branch manager Sandeep Yadav, staff officer Dilip Kumar and credit officer/staff officer Naresh Kumar. More details will be released soon.

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Bank Ordered to Pay Rs 10 Lakh for Losing Customer’s Property Documents

After IDBI Bank failed to return a customer's original property documents, the District Consumer Commission in Kozhikode, Kerala, ordered the bank to compensate the customer with Rs 10 lakh. In 2017, a fire at a document storage facility destroyed papers, according to IDBI Bank. 

The commission noted that the borrower experienced severe hardship and that the loss of the original documents decreased the property's worth. A teacher and businessman who had taken out a Rs 33 lakh home loan from IDBI Bank in 2016 filed a case with the bench, which was made up of President Priya S and Member V. Balakrishnan. He had put the original title deeds to his properties, which included a villa and land, as security for the loan valued at around 1.3 crore.

The commission found the bank guilty of unfair commercial practices and service deficiencies in its order of May 30. It ordered the bank to compensate the plaintiff with Rs 10 lakh. The commission observed that because the bank misplaced the original title documents while they were in its possession, the complainant's lawful ownership rights had been negatively impacted. 

It noted that it was a valid claim to seek damages for such carelessness. The complaint claims that the borrower made extra lump-sum payments in addition to routinely using his wife's account to make loan EMIs. He said that he made the decision to sell the mortgaged property and close the loan account,following the death of his wife, the co-borrower and salaried family member, in March 2020.

In June 2020, the complainant paid Rs 15.1 lakh to settle the outstanding loan balance. Nevertheless, the bank did not return the actual title deeds in spite of repeated requests.

He claimed that the bank gave various explanations at first, first stating that the documents were undergoing closure procedures, then claiming they were lost in floods, and finally acknowledging in November 2020 that the documents had been destroyed in a fire at the Stock Holding Corporation's storage facility in December 2017.

The complaint claimed that he suffered a significant financial loss as a result of the bank's dishonesty, carelessness, and reckless behavior. He said that because the original title deeds were no longer available, he lost a lucrative property sale, had to borrow money and pledge jewelry to return the buyer's advance, and saw a decline in the property's market value.

He also claimed that the bank neglected to take fundamental actions, such submitting a formal complaint or promptly notifying the public about the documents' loss. He claimed that the Banking Ombudsman's participation was the only reason the bank took action.

The Banking Ombudsman ordered the bank in 2021 to give certified copies of the documents, notify the public of their loss, and pay Rs 60,000 in compensation, which included Rs 10,000 for delay and Rs 50,000 for service inadequacy. Despite protesting that the amount was insufficient, the complaint accepted it. He then went to the Consumer Commission to demand compensation of Rs 35 lakh for unfair commercial practices, carelessness, and poor service.

Advocate A.M. Bhaskaran, representing the bank, refuted the claims of carelessness. He contended that the borrower and his spouse had signed a typical 20-year house loan contract and that there was no proof that it was meant to be a temporary arrangement.

The bank admitted that the documents were destroyed in the 2017 fire at Stock Holding Document Management Services Ltd., where many banks and government institutions store important records. However, it argued that the fire was an unforeseen incident beyond its control.

The bank also contended that the Banking Ombudsman had already decided the matter and awarded compensation of Rs 60,000, which the complainant accepted without filing an appeal. Therefore, according to the bank, the Ombudsman’s decision was final and the fresh complaint was not maintainable.

After considering the matter, the Consumer Commission ruled in favour of the complainant and directed IDBI Bank to pay Rs 10 lakh as compensation.

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AIBEA 30th Conference 2026: C.H. Venkatachalam Re-Elected as General Secretary, New Leadership Announced

Below is a blog post draft based on the AIBEA Circular No. 30/1/2026/34 dated 11 June 2026.

AIBEA 30th Conference Concludes Successfully: New Leadership Elected and Key Resolutions Adopted

The All India Bank Employees' Association (AIBEA) has successfully concluded the adjourned delegate session of its 30th Conference held in Bengaluru, marking an important milestone for the organisation and its members across the country.

Conference Successfully Completed

The delegate session, which was originally adjourned on 22 April 2026 due to disturbances during the proceedings, was reconvened on 10 June 2026 at the same venue in Bengaluru. The session was presided over by Com. Rajen Nagar along with other Vice Presidents and concluded peacefully with active participation from delegates.

The conference began with a one-minute silence to pay tribute to former AIBEA office bearer Com. K. Sreenivasan, who passed away recently.

General Secretary's Report Approved

The General Secretary replied to the discussions and suggestions made by the delegates. Following detailed deliberations, the General Secretary's Report was adopted by an overwhelming majority, reflecting the confidence of the delegates in the organisation's leadership and direction.

40 Important Resolutions Passed

Delegates approved 40 resolutions covering various important issues and demands placed before the conference by the Central Committee. The resolutions were adopted by an overwhelming majority, reaffirming AIBEA's commitment to protecting and advancing the interests of bank employees.

Amendment to Rules and Bye-laws

The conference also approved an amendment to the Rules and Bye-laws providing for:

* Two General Council Members (Youth)

* Two General Council Members (Women)

for State Federations having a membership of 7,000 and above. The proposal received overwhelming support from the delegates.

Election of Office Bearers

An Election Commission comprising former leaders Com. D.D. Rustagi, Com. B.S.R. Mohan Reddy and Com. C.D. Josson conducted the election process.

A total of **1,028 delegates exercised their voting rights**, and the following office bearers were elected:

### President

* Rambabu B.S. (AP & Telangana)

### Vice Presidents

* Sharma J.P. (Delhi)

* Shankar N. (Maharashtra)

* Partha Chanda (West Bengal)

* Janak Rawal (Gujarat – MGBEA)

### General Secretary

* C.H. Venkatachalam (Tamil Nadu)

### Secretary

* Indranil Mitra (West Bengal)

### Joint Secretaries

* Ramprakash B. (Kerala)

* Dholakia J.J. (Gujarat – GBWU)

* Anirudhkumar (Bihar)

* Pereira A.M. (Goa)

* Rajneesh Gupta (Uttar Pradesh)

* Karthik R. (Tamil Nadu)

* Udayakumar V. (AP–Telangana)

* Richa Gandhi (Madhya Pradesh)

* Paneendra K.G. (Karnataka)

* Gaurav Sharma (Assam)

* Jayaram B. (Maharashtra)

### Treasurer

* Kumaran C.R. (Tamil Nadu)

### Joint Treasurer

* Naveen Modi (Madhya Pradesh)

Appreciation for Karnataka Hosts

The delegates unanimously expressed their gratitude to the Reception Committee of the Karnataka Pradesh Bank Employees Federation for making excellent arrangements for the conference held from 19–22 April and the adjourned session on 10 June 2026.

Looking Ahead

The successful conclusion of the 30th Conference reflects the resilience and unity of AIBEA. The newly elected leadership, along with the resolutions adopted, is expected to strengthen the organisation's efforts in safeguarding the rights and interests of bank employees while addressing emerging challenges in the banking sector.

The conference concluded with a message of unity, collective responsibility and renewed commitment to taking AIBEA to greater heights in the years ahead.

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Why More than 10,000 IOBOA bankers have joined NOBO-BMS

Over 10,000 officers from the AIBOC-affiliated Indian Overseas Bank Officers' Association (IOBOA) joined NOBO, which is connected to the Bharatiya Mazdoor Sangh (BMS). NOBO-BMS formally described the connection as a significant contribution to its expanding network, while IOBOA explained the rationale for its choice.

With the Indian Overseas Bank Officers' Association (IOBOA) choosing to switch from AIBOC to NOBO-BMS, there has been a significant realignment in the banking trade union scene. The IOBOA asserts that over 10,000 officers are members.

There were two different messages in conjunction with the development. IOBOA cited organizational factors and recent experiences in pursuing officers' grievances as justifications for its decision to depart AIBOC. In the other, NOBO-BMS officially welcomed IOBOA and said that the affiliation was a significant contribution to its expanding network of organizations in the banking industry. The action coincides with continuing conversations in the banking industry about employee welfare, pension concerns, growing workloads, staffing shortages, transfers, and compliance demands.

IOBOA informed its members that the decision was based on a more comprehensive evaluation of the efficacy of its current affiliational arrangement rather than a single occurrence.

 The group cited incidents involving its labor conflicts and agitation programs from earlier this year, when it used its current organizational structure to seek assistance and involvement. IOBOA stated that many members believed the amount of organizational response, coordination, and visible action available throughout crucial periods of the campaign did not completely fulfill expectations, despite acknowledging the solidarity received from many unions and individuals.

The association claims that these experiences led its Executive Committee to conduct an unbiased assessment of its future organizational requirements. The committee came to the conclusion that when collective action was needed, IOBOA needed more institutional support, broader representational space, improved organizational responsiveness, and more efficient follow-up on officer-related matters.

The association also clarified that the proposed transition was not intended to diminish its independent identity. It assured members that its constitution, democratic structure, assets and organisational character would remain unchanged, with the affiliation shift aimed solely at strengthening representation and support mechanisms.

Why IOBOA Chose NOBO-BMS

Explaining the rationale behind its decision, IOBOA said NOBO offered a more responsive and participative organisational framework capable of addressing both present and future challenges faced by officers.

The association noted that NOBO remains a constituent organisation of the United Forum of Bank Unions (UFBU), ensuring continued participation in industry-level negotiations, wage revision discussions and service-condition matters affecting bank employees.

IOBOA further highlighted the wider organisational reach available through the Bharatiya Mazdoor Sangh network, stating that the broader framework could provide stronger institutional support, improved coordination and greater representational effectiveness for officers.

The association expressed confidence that the new affiliation would result in stronger organisational support, better responsiveness on officer-related issues, enhanced visibility of concerns raised by members and improved preparedness for future challenges.

NOBO-BMS Extends Warm Welcome

In a separate letter dated June 6, 2026, NOBO-BMS formally welcomed IOBOA into its fold, describing the affiliation as a significant milestone in the shared mission of protecting the rights and interests of bank officers.

The organisation said IOBOA's entry strengthened its efforts to build a wider platform for officer representation and reaffirmed its commitment to supporting officers across the banking industry. NOBO-BMS emphasised its philosophy of collective action, organisational solidarity and national-level representation.

The federation also highlighted its role within the broader BMS structure, its participation in labour forums and its involvement in discussions relating to banking-sector issues, wage settlements and policy matters affecting employees.

Referring to recent interactions with government authorities and labour institutions, NOBO-BMS said it remains committed to pursuing issues concerning bank officers and retirees while working towards improved workplace conditions, work-life balance and employee welfare.

With IOBOA formally deciding to end its affiliation with AIBOC and align with NOBO-BMS, the association has described the move as part of a broader organisational realignment aimed at strengthening representation and support for its members. Meanwhile, NOBO-BMS has welcomed IOBOA into its fold, marking the beginning of a new chapter in the association’s organisational journey within the banking officers’ movement.

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RBI imposes monetary penalty on this PSU Bank

Canara Bank has been fined ₹41.80 lakh (Rupees Forty One Lakh Eighty Thousand Only) by the Reserve Bank of India (RBI) as follows:

Within the allotted time, the bank failed to upload some customers' KYC records to the Central KYC Records Registry (CKYCR).

Even though the last customer-induced transaction in certain accounts was less than a year old, the bank labeled those accounts as inoperative.

In a different update, Puran Associates Private Limited was fined ₹3.10 lakh (Rupees Three Lakh Ten Thousand only) by the Reserve Bank of India (RBI) for failing to reclassify some accounts as "non-performing assets" during restructuring.

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Female Chief Manager in PSU Bank alleges Harassment by Deputy Zonal Manager

A startling instance of sexual harassment has surfaced at Indian Bank. Sadhna Dubey, a female chief manager, has made startling accusations against Vijay Shankar Thakur, the deputy zonal manager of the Indian Bank Nagpur region.She claimed to be a Chief Manager in the Credit Department and that the Deputy Zonal Manager had been harassing her on a regular basis. She claims that despite her repeated complaints to higher authorities, nothing has been done.

She said the Deputy Zonal Manager regularly summons her to his cabin and keeps an eye on her via CCTV cameras. She further claimed that he mistreats her, disparages her, and speaks poorly of her.

She claims that the alleged harassment has negatively impacted her health and personal life. She said that because of the stress brought on by the harassment, she miscarried and lost her desire to have children. She further claimed that the Deputy Zonal Manager once called her to his cabin after a top official called, telling her that the DGM wanted to talk to her because he liked her.

She claimed that the Deputy Zonal Manager wanted to know who she was speaking to and asked her to display the specifics of her phone conversations. Additionally, she said that every time someone came to see her, he would inquire about their identity and the topics they had talked.

She asserted that the Deputy Zonal Manager disregards women and is unaware of his boundaries. She also urged female employees to file police complaints when organizations fail to address their problems and to take action against such persons.

Indian Bank should take severe measures against the accused officer in line with company policy and the law if these accusations are proven to be accurate. It is the duty of every organization to give female employees a respected, safe, and dignified work environment. In these situations, prompt and equitable action is crucial to preserving employee trust and guaranteeing that harassment occurrences are not accepted.

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This PSU Bank pays Rs 969.64 Crore Dividend to Government of India for FY26

The Indian government received a dividend of Rs 969.64 crore from the Central Bank of India for FY26. For the fiscal year 2025–2026, the Central Bank of India announced and paid its fourth interim dividend at a rate of 6%. As a result, the bank's total interim dividend for FY 2025–2026 has reached 12%, with the first three quarters of the fiscal year seeing the declaration of a 6% interim dividend. The Government of India would get ₹969.64 crore in total dividend payments for FY 2025–2026.

Shri Kalyan Kumar, Managing Director and CEO of Central Bank of India, along with Executive Directors Shri M. V. Murali Krishna, Shri Mahendra Dohare and Shri E. Ratan Kumar, today presented the fourth interim dividend cheque of ₹484.82 crore payable to the Government of India to Union Finance Minister Nirmala Sitharaman at the Ministry of Finance in New Delhi. The cheque presentation ceremony was also attended by Smt. Shalini Pandit, Joint Secretary, Department of Financial Services, Ministry of Finance, Government of India, and Shri Shishram Tundwal, General Manager, Central Bank of India.

Banks pay dividends to distribute a part of their profits to shareholders. When a bank earns a profit, it does not keep the entire amount for itself. A portion of the profit may be paid to shareholders as a dividend, while the remaining amount is retained for business growth, capital requirements, and future operations. In the case of public sector banks, the Government of India is usually the largest shareholder. Therefore, when a bank declares a dividend, a significant portion of the dividend is paid to the government. Dividend payments also reflect the bank’s strong financial performance and provide income to shareholders for their investment in the bank.

The Government shareholding in Banks is as follows:

Bank Name	Govt Stake (Dec 25)	Govt Stake (June 24)
State Bank of India	55.50%	57.54%
Canara Bank	62.93%	62.93%
Bank of Baroda	63.97%	63.97%
Punjab National Bank	70.08%	70.08%
Bank of India	73.38%	73.38
Indian Bank	73.84%	73.84%
Union Bank of India	74.76%	74.76%
Bank of Maharashtra	73.60%	86.46%
UCO Bank	90.95%	95.39%
Central Bank of India	89.27%	93.08%
Indian Overseas Bank	92.44%	96.38%
Punjab & Sind Bank	93.85%	98.25

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Top Indian Banks & Their Mobile Banking Apps: Latest Ratings and Reviews in 2026

Digital banking in India is growing rapidly, and mobile banking apps have become one of the most important services offered by banks today. From fund transfers and bill payments to UPI transactions and investment services, banking apps are now an essential part of daily life for millions of customers.

In this article, we take a look at some of the top Indian banks, their official mobile banking apps, and their latest Google Play Store ratings and review counts.

Public Sector Banks (PSBs)

Public sector banks have significantly improved their digital banking platforms over the last few years.

* State Bank of India – YONO SBI – 4.2★ (3M reviews)

* Bank of Baroda – bob World – 4.3★ (1M reviews)

* Punjab National Bank – PNB ONE – 4.3★ (1M reviews)

* Canara Bank – Canara ai1 – 4.4★ (1M reviews)

* Union Bank of India – Union Ease – 3.0★ (816K reviews)

* Bank of India – BOI Mobile Omni Neo Bank App – 4.0★ (150K reviews)

* Indian Bank – IndSMART – 4.3★ (698K reviews)

* Central Bank of India – Cent Mobile – 3.6★ (139K reviews)

* Indian Overseas Bank – IOB VYOM – 4.3★ (20K reviews)

* UCO Bank – mPassbook / UCO mBanking Plus – 4.7★ (342K reviews)

* Bank of Maharashtra – Zen-lyfe – 3.0★ (6K reviews)

* Punjab & Sind Bank – PSB UniC – 4.4★ (22K reviews)

Major Private Sector Banks

Private banks continue to dominate in terms of user experience, ratings, and app innovation.

* HDFC Bank – HDFC Bank MobileBanking – 4.7★ (1M reviews)

* ICICI Bank  – iMobile Pay – 4.6★ (6M reviews)

* Axis Bank – Axis Mobile – 4.8★ (3M reviews)

* Kotak Mahindra Bank – Kotak Mobile Banking / Kotak 811 – 4.7★ (1M reviews)

* IndusInd Bank – IndusMobile – 4.6★ (703K reviews)

* YES Bank – IRIS – 4.7★ (133K reviews)

* IDFC FIRST Bank – IDFC FIRST Bank Mobile App – 4.9★ (2M reviews)

* IDBI Bank – Go Mobile+ – 4.6★ (321K reviews)

* Federal Bank – FedMobile – 4.5★ (196K reviews)

* South Indian Bank – SIB Mirror+ – 4.2★ (54K reviews)

* RBL Bank – RBL MyBank – 4.4★ (100K reviews)

* Karnataka Bank – KBL Mobile Plus – 4.6★ (220K reviews)

* Karur Vysya Bank – KVB DLite – 4.8★ (139K reviews)

* City Union Bank – CUB Mobile Banking – 4.2★ (29K reviews)

Key Observations

* IDFC FIRST Bank currently has one of the highest ratings at 4.9★.

* Axis Bank and Karur Vysya Bank also maintain excellent customer ratings at 4.8★.

* ICICI Bank’s iMobile Pay leads in review count with around 6 million reviews.

* PSU banks are improving rapidly in mobile banking services and digital adoption.

* Customers now prefer apps with smooth UI, quick UPI services, and reliable customer support.

Mobile banking has become the backbone of modern banking services in India. Banks are continuously upgrading their apps to provide secure, fast, and customer-friendly digital experiences.

Whether it is UPI payments, account management, online FD booking, or digital loan services, banking apps are shaping the future of Indian banking.

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Employee of Bank of Baroda(BoB) arrested for stealing Rs 8.70 crore

Harsiddh Kadiyar, a joint custodian for Bank of Baroda, was detained by the Ahmedabad Police on Friday on suspicion of embezzling Rs 8.70 crore from the bank. According to reports, Kadiyar, who had been employed by the bank for the previous fifteen years, acknowledged that he stole in order to support an opulent lifestyle.

Officials at the bank's Kalupur branch, which also has a Reserve Bank of India (RBI) currency chest used to transfer money to other banks, uncovered the alleged theft after discovering that 174 bundles of Rs 500 notes worth Rs 8.70 crore were missing from the vault. Chief custodian Sanjay Sharma and joint custodian Harsiddh Kadiyar oversaw the vault.

After reviewing the CCTV footage, bank officials discovered that Kadiyar was observed leaving the bank on January 13 with many boxes. By claiming that the boxes contained trash that he was taking outdoors for disposal, he allegedly deceived his coworkers. He thought the CCTV film would be automatically erased after three months, so he kept working at the bank for about ninety days following the robbery.

The bank manager later filed a complaint at the local police station, after which the police started an investigation.

Police arrested Kadiyar soon after the complaint was filed. During questioning, he reportedly confessed to the crime.

According to the preliminary investigation, Kadiyar used the stolen money to buy a bungalow in Chandkheda worth more than Rs 2 crore, a shop worth Rs 1.40 crore, a small truck, and also invested some money in cryptocurrency.

He also allegedly gave Rs 28 lakh to a co-worker, Vaishali Ben. Police recovered Rs 2.20 crore in cash from an Ertiga car parked outside a house in Sola where Kadiyar was staying. The vehicle and his mobile phone have also been seized.

Following that time, Kadiyar claimed to be ill and quit going to work. He requested a five-day medical absence on April 13, but he didn't go back to work until April 20.

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