Latest Updates on Bank Merger

The Government of India is preparing a big plan to reorganise public-sector banks. If this plan is adopted, the number of government-owned banks will come down from 12 to only four by the financial year 2027. These four banks will be State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB), and a new, sizable bank created by combining Canara Bank and Union Bank of India, according to sources in a report released by Money Control. The Finance Ministry is working on the idea with the main purpose of strengthening the banks, boosting their financial health and making them strong enough to compete with global lenders.

Canara Bank and Union Bank are scheduled to be combined first. The government is also exploring if Indian Bank and UCO Bank can be incorporated into this same structure. These banks will serve as the primary pillars of the public-sector banking system once they are finished, along with SBI, PNB, and BoB. Other mid-sized banks such as Indian Overseas Bank, Central Bank of India, Bank of India and Bank of Maharashtra may be merged into SBI, PNB or BoB. Punjab & Sind Bank has not yet received a final verdict. Before the plan is implemented, it has to pass through numerous approval phases. It will first be presented to the Minister of Finance.

After that, it will be reviewed by senior officials, examined by the Prime Minister’s Office and checked by SEBI because the decision could affect the stock market. Only after all clearances will the mergers move forward.

The government believes that creating larger and stronger banks will help meet the country’s growing need for credit. Bigger banks can handle large loans, support infrastructure projects and match the growth of private sector banks. Officials also feel that mergers will help cut costs, remove duplicate branches and make better use of capital. They say that this round of consolidation may be smoother than the earlier one because banks today have stronger balance sheets, better systems and more experience in handling mergers.

If this plan becomes a reality, it will be the second major phase of bank consolidation after the 2017–2020 reforms, which reduced the number of state-owned banks from 27 to 12. The new proposal aims to take this change further and build a smaller number of much stronger public-sector banks that can support India’s future growth.

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Meeting for the merger and privatization of PSU banks may be held soon by the prime minister's office

                                       

As per the report, the Privatisation of two public sector banks may be discussed. The meeting is likely to discuss bank consolidation, more operational autonomy for boards of state-run banks, raising FDI limits in PSBs to 49 percent from the current 20 percent, and supporting these banks’ need for additional capital.

The inter-ministerial discussions on the reforms in PSU Banks is in the final stages, and once the PMO meeting is concluded, political decisions will be taken closer to the Budget. The Central government is planning to execute its agenda between 2026 and 2028, before the 2029 general elections.

India is considering increasing the foreign investment limit in public sector banks (PSBs) from the current 20% to 49% in an effort to strengthen these banks and make it easier for them to raise capital. As per the information available till now, while higher foreign stakes may be allowed, the government’s shareholding in PSBs will not fall below 51%, thereby ensuring their public sector status. A final decision will be taken at the highest level of government.

Finance Minister Nirmala Sitharaman on November 6 had also confirmed that the government has begun work on the next phase of public sector bank (PSB) consolidation. She said India now needs several big, world-class banks to support the requirements of a fast-growing economy.

As per sources, the government is considering merging Indian Overseas Bank (IOB), Central Bank of India (CBI), Bank of India (BOI), and Bank of Maharashtra (BoM) with larger banks such as Punjab National Bank (PNB), Bank of Baroda (BoB), and State Bank of India (SBI).

The latest merger proposal also follows NITI Aayog’s recommendation to restructure or privatise smaller PSBs such as IOB and CBI. The government’s think tank had earlier suggested keeping only a few large state-run banks — SBI, PNB, BoB, and Canara Bank — while merging or reducing the government’s stake in the rest. The current plan builds on those earlier recommendations but aligns them with today’s conditions. With fintech and private banks growing rapidly, the idea is to position public sector banks strategically instead of spreading them too thin.

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Latest Updates on Bank Merger and Privatisation

According to sources, the Indian government is creating a new plan to combine a few public sector banks. The government intends to combine Union Bank of India with Bank of India, according to sources. If all goes according to plan, the merger will result in the creation of India's second-biggest bank, after State Bank of India, the nation's largest bank in terms of assets. Mumbai serves as the headquarters for both Union Bank of India and Bank of India. 

 As of June 30, 2025, Bank of Baroda had ₹18.62 trillion in total assets, making it the second largest public sector bank in India. Among all banks, including private banks like ICICI Bank and HDFC Bank, its asset base places it fourth. A merged Union Bank of India and Bank of India would have assets of ₹25.67 trillion.

Additionally, the ministry is considering combining Indian Bank and Indian Overseas Bank. Chennai is home to the headquarters of both banks. In subsequent stages, the privatization of Bank of Maharashtra and Punjab & Sind Bank is being discussed. The merger of other banks under government control may be taken into consideration. 

 Although merger timelines are still pending, the process is expected to begin in FY27. In order to establish fewer but more powerful institutions, the government is developing a massive merger plan that would combine smaller banks with larger ones. The goal is to assist the next stage of credit expansion and financial reforms while fortifying and improving the banking sector.

The government is reportedly thinking of combining Indian Overseas Bank (IOB), Central Bank of India (CBI), Bank of India (BOI), and Bank of Maharashtra (BoM) with bigger banks like Punjab National Bank (PNB), Bank of Baroda (BoB), and State Bank of India (SBI).

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PSB Merger Big News: Government draws up mega bank merger plan; smaller banks will be merged with larger banks by FY27

According to government officials who spoke to Moneycontrol, the government is preparing a massive merger that could combine smaller lenders with larger banks, bringing India's banking industry closer to yet another round of public sector bank consolidation. 

According to a source, the goal is to simplify the PSB landscape so that there are fewer, more powerful organizations that can assist with the upcoming stage of credit growth and financial sector reforms. 

 According to government sources, major banks like Punjab National Bank (PNB), Bank of Baroda (BoB), and State Bank of India (SBI) may combine with Indian Overseas Bank (IOB), Central Bank of India (CBI), Bank of India (BOI), and Bank of Maharashtra (BOM). 

"The PMO will review a record of the plan's discussion after it has been taken up by senior Cabinet officials." The goal is to "finalize the roadmap within the same year," therefore discussions are anticipated to continue in FY27. 

 In order to facilitate consultations and get the opinions of the participating banks, FY27 is probably a good timeframe. According to the source cited above, "the government wants to build consensus internally before making any formal announcements." The finance ministry did not respond to an email asking for remarks.

In order to create stronger, better-capitalized banks that could compete globally, the government merged 10 PSBs into four larger entities between 2017 and 2020, reducing the number of state-owned banks from 27 in 2017. 

Syndicate Bank merged with Canara Bank, and Oriental Bank of Commerce and United Bank of India merged with PNB. This development comes as the Center looks to revive PSB consolidation. The government plans to take up the merger proposals as part of its medium-term banking sector reform strategy.

The ongoing drive for a merger also goes against the suggestions made by NITI Aayog to reform or privatize smaller PSBs, like CBI and IOB, which were considered as possible candidates for a strategic sale. Only a small number of major state-run banks, including SBI, PNB, BoB, and Canara Bank, were to be retained, according to a government think tank. 

The remainder institutions would either be privatized, merged, or have their government ownership reduced. According to someone with knowledge of the talks, "the current plan builds on those recommendations but adapts them to present conditions." "The idea is to strategically position PSBs rather than spread them thin, given the rapid expansion of fintech and the scale expansion of private banks."

What is the record of discussion?

The record of discussion is an internal government document that captures the key points of deliberations. It forms the basis for subsequent decision-making and approvals.

What is the timeline being considered?

According to sources, the proposals are expected to be taken up for inter-ministerial discussions in FY27, which would then be deliberated upon by the cabinet and Prime Minister's Office (PMO) level deliberations in the same fiscal year.

Why is the government considering further consolidation?

The objective is to create larger, stronger banks with better balance sheet capacity, improve operational efficiency, and enhance competitiveness in the global financial landscape.

Source - Moneycontrol

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RBI approves amalgamation of two Gujarat based Co-Operative Banks

The Scheme of Amalgamation of The Dhinoj Nagrik Sahakari Bank Ltd., Dhinoj, Gujarat, with Akhand Anand Co-operative Bank Ltd., Surat, Gujarat, has been approved by the Reserve Bank of India in the exercise of the authority granted by sub-section (4) of Section 44A read with Section 56 of the Banking Regulation Act, 1949.

The plan is scheduled to go into effect on Monday, June 16, 2025. Effective June 16, 2025, all Dhinoj Nagrik Sahakari Bank Ltd. branches in Dhinoj, Gujarat, will operate as branches of Akhand Anand Co-operative Bank Ltd. in Surat, Gujarat.

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Latest Bank Merger News - 2 Banks Amalgamated, RBI issued Notification

The Scheme of Amalgamation of The Adinath Co-operative Bank Ltd., Surat, Gujarat, with Shri Vinayak Sahakari Bank Ltd., Ahmedabad, Gujarat, has been approved by the Reserve Bank of India in the exercise of the authority granted by sub-section (4) of Section 44A read with Section 56 of the Banking Regulation Act, 1949. 

 The plan is scheduled to go into effect on Monday, June 9, 2025. Beginning on June 9, 2025, all of The Adinath Co-operative Bank Ltd.'s branches in Surat, Gujarat, will operate as branches of Shri Vinayak Sahakari Bank Ltd. in Ahmedabad, Gujarat.

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Latest Bank Merger News : 4 PSU Banks likely to be merged

According to sources, the government has formulated its plan for the second round of merger of PSU banks. The government is considering two options for merging four small government banks. To facilitate the merger, changes are being prepared in the Banking Regulation Amendment Act. One option is to merge UCO Bank, Bank of Maharashtra, Punjab & Sind Bank, and Central Bank of India.

The second option involves merging with Union Bank of India, Canara Bank, or Indian Bank according to the banking software. 

The government aims to make these changes in the Banking Regulation Amendment Act to facilitate the merger process. 

The functioning of UCO Bank, Punjab & Sind Bank, Bank of Maharashtra, and Central Bank has shown improvement in the past few years. This is a developing story.

Let us tell you that the government has a 98.25 per cent stake in Punjab & Sind Bank.

While the government has a 93.08 per cent stake in Central Bank, 86.46 per cent in Bank of Maharashtra and a 95.39 per cent in UCO Bank.

The government had announced the merger of 10 public sector banks into four entities in 2019.

This was part of the government's policy to strengthen public sector banks (PSU Bank Mergers) to strengthen their finances for a strong national presence and global reach.

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Latest News : Merger of Public Sector Banks(PSBs)

 

According to a report from CNBC-TV18 on May 17, the Union government of India has stated that there are no plans to merge public sector banks (PSBs). An unnamed government official confirmed that there is no proposal for a merger and that they are not aware of any discussions regarding such a merger.

Currently, India has 12 state-run banks. The number of banks reduced after a merger exercise in 2020, which saw 10 state-run banks being merged into four. These mergers included Punjab National Bank (PNB) absorbing Oriental Bank of Commerce and United Bank, Canara Bank absorbing Syndicate Bank, Union Bank of India absorbing Andhra Bank and Corporation Bank, and Indian Bank merging with Allahabad Bank.

In December 2023, there were speculations of a merger between Union Bank and UCO Bank, as well as Bank of India and Bank of Maharashtra. However, the finance ministry clarified that these speculations were related to a parliamentary committee on subordinate legislation and had no connection to policies on bank mergers.

A document circulating on X (formerly Twitter) detailed a proposed merger between Union Bank and UCO Bank, and Bank of India and Bank of Maharashtra. The document was titled “Study Visit programme of the Committee on Subordinate Legislation, Lok Sabha to Mumbai and Goa from 2 to 6 January 2024” and was attributed to Ramesh Yadav, an undersecretary of the Government of India.

The document was shared with various stakeholders, including the governor of the Reserve Bank of India, chairman of Life Insurance Corporation of India, Insurance Regulatory and Development Authority of India, and National Bank for Agriculture and Rural Development. It was also addressed to the managing directors and CEOs of UCO Bank, Bank of Maharashtra, Bank of India, and Union Bank of India, as well as several  insurance companies.

The finance ministry clarified that the document was solely related to the parliamentary committee on subordinate legislation and had no connection to bank merger policies. The agenda of the meeting was reportedly changed, and the new agenda did not mention any merger plans. In other words, there are currently no proposals for a merger between Union Bank of India and UCO Bank, Bank of India, and Bank of Maharashtra.

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Latest Bank merger news of PSU banks and PSU Insurance Company

 

A government document shared on social media has triggered speculation about possible PSU bank mergers between Union Bank and UCO Bank, and Bank of India and Bank of Maharashtra. The document, whose source couldn't be verified, said that a Parliamentary committee will hold discussions with four PSU banks in the first week of January under banking laws, which govern mergers and acquisitions, among other things.

However, the government has not yet provided official information regarding the merger. Neither of the four PSU banks mentioned have made any stock exchange filings in this regard.

The document being circulated on X (formerly Twitter) is a government PDF issued in the name of Ramesh Yadav, Under Secretary of the Government of India. The letter is issued to the Governor, Reserve Bank of India, Chairman of LIC, IRDAI, and NABARD, along with MD and CEOs of UCO Bank, Bank of Maharashtra, Bank of India, and Union Bank of India.

The PDF is also addressed to CMDs of New India Assurance Company, United India Insurance Company, Oriental Insurance Company, National Insurance Company, and MD & CEO of SBI Life Insurance Company. The subject of the alleged government PDF states 'Study Visit programme of the Committee on Subordinate Legislation, Lok Sabha to Mumbai and Goa from 2 to 6 January 2024'.

The 2-day programme includes informal discussions with the representatives of Union Bank of India and UCO Bank on January 2, and with representatives of Bank of Maharashtra and Bank of India on January 4, 2024, on rules/regulations framed under Banking Regulations Act 1949 and other relevant Acts as applicable to them and the regulatory mechanism in post-merger scenario.

The Finance Ministry has reportedly issued a clarification, saying that this is a parliamentary committee on subordinate legislation, and it has no connection whatsoever with the policies of bank mergers, according to CNBC-Awaaz. Amid the merger buzz, the ministry reportedly changed the agenda of its meeting. According to the new agenda, there is no mention of the word “Merger”, which simply means that there is no proposal for a merger between Union Bank of India and UCO Bank, Bank of India, and Bank of Maharashtra, said CNBC Awaaz in its report.

Meanwhile, No proposal to merge the public sector banks is being considered by the government and the discussions were part of a ‘routine exercise, Reuters also reported citing two sources from the Ministry of Finance.

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Cabinet approves RBI's proposal to merge Lakshmi Vilas Bank with DBS Bank, all branches to function as DBS Bank, says RBI

Union Cabinet on Wednesday approved the merger of capital-starved Lakshmi Vilas Bank (LVB) with DBS Bank India. The Reserve Bank of India on 17 November proposed the merger of the 94-year-old lender with the Indian arm of Singapore’s DBS Bank. As part of the amalgamation, DBIL will infuse fresh capital of Rs.2,500 crore into LVB.

The central bank on 17 November placed Lakshmi Vilas Bank under one-month moratorium, superseded its board and capped withdrawals at Rs.25,000 per depositor. "With the merger, there will no further restrictions on the depositors regarding the withdrawal of their deposit," Union minister Prakash Javadekar said.

Analysts and global credit rating agencies have applauded RBI's move and said that it will benefit both parties. "The quick action taken by the RBI in the Laxmi Vilas Bank matter affirms the faith of the depositors in the banking system," Ajay Shaw, Partner, DSK Legal.

"LVB merger with another bank is a very prudent step in order to save the depositors and to mitigate the systematic disruption associated with it. The image of government and regulator gets enhanced by such timely action and response," said S Ravi, former chairman of Bombay Stock Exchange (BSE) and Managing Partner of Ravi Rajan & Co.

DBS was the first foreign bank to receive a banking licence after the central bank allowed foreign banks to set up a wholly owned subsidiary in 2014. "With DBS likely to use digital capabilities to enhance its physical footprint in India, the proposed deal could lead to a 30-40% increase in Indian assets of DBS," said JPMorgan analysts Harsh Wardhan Modi and Saurabh Kumar.

The regulator had put LVB under Prompt Corrective Action in September 2019. The lender earlier reported widening of its net loss at Rs.397 crore in the second quarter ended September 2020 due to rise in bad loans and provisions. On 25 September, the shareholders of the bank had voted out seven members from the board, including the then MD and CEO S Sundar. The RBI on 27 September appointed the CoD composed of three independent directors Meeta Makhan, Shakti Sinha, and Satish Kumar Kalra, being headed by Meeta Makhan.

Moody’s said the merger will strengthen DBS’s business position in India by adding new retail and small and medium-sized customers.

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Merger News: Mega merger of 10 PSU banks takes effect; all you need to know

The merger of ten government-run banks into four will come into force from April 1. The branches of the merging banks will operate as branches of the banks in which they have been merged. Customers of merging banks will also now be treated as customers of the banks in which these banks have been merged. The banks' merger was announced last year in August and the union cabinet gave the final approval on March 4. In the past, various other bank mergers have taken place. For instance, in 2017, the country's largest public lender - the State Bank of India took over five of its associates and Bharatiya Mahila Bank. Last year, Vijaya Bank and Dena Bank were merged with Bank of Baroda. Kotak Mahindra Bankcand ING Vysya Bank merger and amalgamation of Centurion Bank of Punjab Ltd. with HDFC Bank took place in 2014 and 2008, respectively.

Here are a few aspects of the PSU bank merger:

1. As per the latest merger- Oriental Bank of Commerce (OBC) and United Bank of India (UBI) will be merged with Punjab National Bank (PNB). The merged entity will become the second-largest state-run bank. The new entity will have a business of Rs 17.95 lakh crore and 11,437 branches.

2. The amalgamation of Syndicate Bank into Canara Bank will create the fourth-largest public sector bank with Rs 15.20 lakh crore business and a network of 10,324 branches.

3. Allahabad Bank branches will operate as those of the Indian Bank. The merger of Allahabad Bank with the Indian Bank will create the seventh-largest public sector bank with Rs 8.08 lakh crore business.

4. Branches of Andhra Bank and Corporation Bank will function as the branches of Union Bank of India. Andhra Bank and Corporation Bank's merger with Union Bank of India will create India's fifth-largest public sector bank with Rs 14.59 lakh crore business and 9,609 branches.

5. The government had front-loaded Rs 68,855 crore to take care of the bank-merger plan.

6. Punjab National Bank was given Rs 16,091 crore, Union Bank of India Rs 11,768 crore, Canara Bank Rs 6,571 crore and Indian Bank Rs 2,534 crore. Allahabad Bank was provided Rs 2,153 crore, United Bank of India Rs 1,666 crore, Andhra Bank Rs 200 crore, Indian Overseas Bank Rs 4,360 crore and UCO Bank Rs 2,142 crore.

7. According to the government, the merger of the 10 banks will lead to the creation of stronger establishments. This merger would follow in the example of the amalgamation of Bank of Baroda, Vijaya Bank, and Dena Bank last year.

8. With this mega-bank mergers, the number of PSBs will get consolidated from 27 banks in 2017 to 12 banks in 2020.

9. The new 12 public sector banks will be -- six merged banks and six independent banks. State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Union Bank of India, Indian Bank will be the six merged banks. And Bank of India(BoI), Central Bank of India, Indian Overseas Bank, UCO Bank, Bank of Maharashtra and Punjab and Sind Bank, which have a strong regional focus, will remain independent entities.

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PSU banks announce share-swap ratios ahead of April 1 merger

Following the footsteps of State Bank of India and Bank of Baroda, the boards of 10 public-sector banks on Thursday approved mergers and issued share-swap ratios to create four large banks in the economy.

The four anchor banks will be Punjab National Bank, Canara Bank, Union Bank of India, and Indian Bank. The merger will be effective from April 1.

Last year, Bank of Baroda took over Vijaya Bank and Dena Bank. Before that, State Bank of India (SBI) had merged all its five associate banks with itself to enter the global top 50 banks’ list in terms of size. Punjab National Bank (PNB) will merge with United Bank of India and Oriental Bank of Commerce to create the largest bank in the country after State Bank of India.

According to notifications to the stock exchanges, Delhi-based PNB will issue 1,150 shares for 1,000 shares of Oriental Bank of Commerce, and 121 shares for 1,000 shares of United Bank of India.

Mumbai-based Union Bank of India will take Andhra Bank and Corporation Bank. Union Bank of India will issue 325 shares for 1,000 shares of Andhra Bank, and 330 shares for 1,000 shares of Corporation Bank.

Bengaluru-based Canara Bank will issue 158 shares for 1,000 shares of Syndicate Bank.

Allahabad Bank said for every 1,000 shares (face value Rs 10) of Allahabad Bank, there would be 115 shares (face value Rs 10) of Indian Bank.

The Union Cabinet had approved the consolidation to build the mega banks “to create more efficient and bigger public sector banks in the challenging environment to meet the credit needs of a growing economy and to achieve operational efficiency by scale of business”. The amalgamation will lead to a wide geographical reach, technology adaption, and, more importantly, better utilisation of scarce capital.

A grievance redress system has been put in place, and a committee has been formed headed by a retired judge. If shareholders have any issue with the swap ratio — for example, if they feel they didn’t get enough time or if they need information — they can raise it. This is the board-approved swap ratio.

“After the committee receives all the grievances, it will have seven days to recommend changes, if needed, which will be the final swap ratio,” said a top official of a PSB to be merged.

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Merger News: Cabinet approved plan for banking game-changer , 10 PSBs to turn into four big banks

The Cabinet has approved the consolidation of 10 public sector banks (PSBs) into four 'mega banks', Finance Minister Nirmala Sitharaman announced today. The Union Cabinet, she said, has given a go-ahead for the merger proposal and the government has been in regular touch with these banks.

"The banks' merger is on course and decisions have already been taken by the respective bank boards," she said. The Narendra Modi government had announced the mega merger in August last year.

As per the plan, United Bank of India and Oriental Bank of Commerce would merge with Punjab National Bank , making the proposed entity the second largest public sector bank.

Syndicate Bank will be merged with Canara Bank , and Allahabad Bank with Indian Bank . Similarly, Andhra Bank  and Corporation Bank  are to be clubbed with Union Bank of India.

Bank unions, who believe the merger is not a solution to the banking sector's problems, are opposed to the move.

The idea had been first publicly mooted in December 2018 when the RBI said that India could create some global banking majors if the then-ongoing mergers of some state-owned banks achieve the desired impact of creating stronger and well-capitalised lenders of global scale.

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Strike call by union this month to protest against merger of PSU banks

Days after bank unions called off a three-day bank strike from March 11, two unions called for another bank strike on March 27 to oppose the mega merger of PSU banks. Finance Minister Nirmala Sitharaman announced yesterday that the Union Cabinet has approved the plan to merge 10 PSU banks into four larger banks. The merger comes into effect from April 1 this year.

The All India Bank Employees' Association (AIBEA) and All India Bank Officers Association (AIBOA) have given a joint call for an all-India bank strike on March 27. Their demands include stopping the proposed merger of 10 PSU banks, stopping the privatisation of IDBI Bank and rollback of banking reforms, recovery of bad loans and increase of interest rate on deposits.

C.H. Venkatachalam, general secretary, AIBEA, said, the unions have planned series of protests this month peaking with the strike on March 27. The Bank Employees Federation of India (BEFI) has also announced a fortnight-long agitation programme to protest against the merger."Banks themselves face problems due to huge pile of bad loans. While the public sector banks made a total gross profit of Rs.150,000 crore for the year ended March 31, 2019, because of total provisions towards bad loans, etc. amounting to Rs.216,000 crore, the banks ended in a net loss of Rs.66,000 crore," Venkatachalam said.

Sitharaman, on the other hand, said the merger plan would enhance customer convenience, better branch service, higher credit flow, and lesser time in loan sanctions. Greater scale and synergy through consolidation would lead to cost benefits which should enable the PSBs enhance their competitiveness and positively impact the Indian banking system, a Finance Ministry statement said.

As per the amalgamation plan, United Bank of India and Oriental Bank of Commerce would be merged with Punjab National Bank, making the proposed entity the second largest public sector bank. It was decided to merge Syndicate Bank with Canara Bank, while Allahabad Bank with Indian Bank. Similarly, Andhra Bank and Corporation Bank are to be consolidated with Union Bank of India.

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Kotak proposes ‘six-three-three’ formula for public sector banks

The chairman and managing director of the Kotak Mahindra Financial institution, Uday Kotak, on Friday proposed diluting authorities stake to underneath 50% in three of the 12 direct-owned banks and running the opposite three below public-non-public partnership.

“After the merger of varied direct-owned banks, we’re now the total map down to 12 direct-owned banks. I quiet divulge that now we want to catch a six-three-three system. Six banks ought to live within the general public sector. In three others, direct possession ought to transfer underneath 50%. And for the others, we ought to mediate out of the sphere and salvage out a transparent map for public-non-public partnership, with domestic and non-domestic avid gamers,” Kotak said, whereas speaking at the Asia Economic Dialogue (AED) in Pune.

He said India used to be at the cusp of making some serious selections within the financial sector and folk well-known to ask some sophisticated questions. “India nationalized its banking device in 1969. I desire some evaluation on the quantity of taxpayers’ cash that has been attach into these banks from 1969 to 2020…Then now we want to ask that over a duration of 70 years, what’s the return to the Indian taxpayers on the crores of rupees which were attach into the direct-owned banks?” Kotak said.

Kotak said he didn’t advocate transferring faraway from direct-owned banks, but direct possession, in a pair of of them, would possibly per chance per chance unbiased be diminished.

He added that he saw a skill battle for the worldwide financial technology train within the raze, between Western and Chinese systems, currently exemplified by the discuss over 5G wireless applied sciences that had been being aggressively marketed by Chinese corporations.

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Govt likely to notify merger of 10 PSBs this week; process to be completed by April

Centre on August 30 last year announced four major mergers of public sector banks, bringing down their total number to 12 from 27 in 2017. The move was aimed at making state-owned lenders global sized banks

Each bank is required to follow regulatory norms to protect minority stakeholders' interests

The Centre will likely notify the merger of 10 public sector banks to create four big banks this week. Once notified, board members of these banks will give their approval swap ratio for the mergers. Each bank is required to follow regulatory norms to protect minority stakeholders' interests. Reports say all 10 banks will complete the merger process by April.

"We are expecting the government to notify the merger this week," United Bank of India managing director Ashok Kumar Pradhan said, The Economic Times reported.

In the biggest consolidation exercise in the banking space, the government on August 30 last year announced four major mergers of public sector banks, bringing down their total number to 12 from 27 in 2017. The move was aimed at making state-owned lenders global sized banks.

United Bank of India and Oriental Bank of Commerce will be merged with Punjab National Bank, making the proposed entity the second largest public sector bank (PSB). Syndicate Bank will be merged with Canara Bank, while Allahabad Bank will be amalgamated with Indian Bank. Similarly, Andhra Bank and Corporation Bank will be consolidated with Union Bank of India.

Post the consolidation, Punjab National Bank will have a business size of Rs 17.94 lakh crore, becoming the second-largest PSB after SBI with a business of Rs 52.05 lakh crore. The consolidated Canara Bank will be the fourth-largest bank with a business of Rs 15.2 lakh crore, followed by Union Bank of India at Rs 14.59 lakh crore. After subsuming Allahabad Bank, Indian Bank will be the seventh-largest state-lender with business size of Rs 8.08 lakh crore.

Bank of Baroda, after the merger with Vijaya Bank and Dena Bank, had become the country's third-largest bank. It has a business of Rs 16.13 lakh crore.

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AIBEA Wants PMC Bank to be Merged with any Public Sector Bank

                                  

Though the 11th Bipartite Wage revision of the Public Sector Banks are still pending for more than two years with the reason of higher Non performing assets (NPA), the employees union of the Public Sector Bank, All India Employees Association (AIBEA) geenral secretary has requested the finance minister to merge the defunct Punjab & Maharashtra Co-operative Bank with a Public sector Bank and lift the ban on withdrawal limit.

He said " it is necessary to lift the present ban and order the takeover of this Bank by a Public Sector Bank (PSB). We strongly feel that the City Co-Operative Urban Bank is a fit case for being merged with a Public sector Bank and its present licence should be cancelled forthwith.

Mr Venkatachalam also appealed to Finance Minister Ms Sitharaman to merge all Co-op Banks into PSU banks to avoid loot of deposits in the hands of political leaders who normally control them and convert the deposits into bad loans and put the depositors in dire financial stress when RBI applies the brakes through Audit and Inspection Department (AID) by applying 35 A restrictions, Make RBI accountable as single window to all depositors in Indian Union rather than dual reporting to RBI and Registrar of Co-op Societies in case of Co-op banks and in the bargain having no accountability with both washing off their responsibilities.

I don't know what to say about AIBEA approach but I believe that at this moment the much needed work is to settle the long pending salary of the bank employees and it is to remind the AIBEA leadership that there are more employees and their dependents suffering due to non settlement of the 11th bipartite as compare to PMC bank. First to look after the hunger of our own house than others.

Source - bipartitesettlement.com

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