Bank Merger of 10 PSBs: On Saturday 28 March 2020, RBI Reserve bank of India approved an amalgamation of-
- Oriental Bank of Commerce (OBC) and United Bank of India (UBI) merged into Punjab National Bank (PNB),
- Syndicate Bank merged into Canara Bank
- Andhra Bank and Corporation Bank merged into Union Bank of India
- Allahabad Bank merged into Indian Bank(IB)
After SBI Which has Business has over Rs. 52 Lakh Crore. Punjab National Bank will become the Second Largest Bank, With Rs. 17.95 Lakh Crore Business Size. Finance Minister Nirmala Sitharaman on 26 March 2020 had clarified that the Merger of Bank Consolidation Plan was very much on track and would take effect from 1 April 2020.
Under the Merger of Bank, the braches of Oriental Bank of Commerce and United Bank of India Will Operate as branches of Punjab National Bank from 01 April 2020, and Syndicate Bank Branches of that of Canara bank. Branches of Allahabad Bank will function as those of the Indian Bank while the branches of Andhra Bank and Corporation Bank will operate as the Union Bank of India from the Fiscal year 2020-21.
The RBI Noted, Customers, as well as 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. The Indian Prime Minister Mr. Narendra Modi announced the Mega-merger of banks in August 2019, this Month the cabinet gave its approval for the mergers. In 1969, the Indian Prime Minister Indira Gandhi initiated the Process of nationalization of Banks.
What is the Bank Merger of 10 PSBs?
Bank Merger is a situation in which two or more than two banks pool their assets and liabilities to become one bank. The merger is an amalgamation of two groups into a single entity. It’s a process of combining two or more business entities under one ownership.
How many Types of Bank Mergers?
There are 3 Types of Merger
- Horizontal Merger: Which increase Market Share
- Vertical Merger: Which exploit existing synergies
- Concrete merger: Expand the product Offering
Motives for Bank Merger of 10 PSBs 2020
- Value Creation
- Acquisition of Assets
- Increase in Financial capacity
- Tax purpose
- Incentives for managers etc.
List of Bank Mergers in Indian Banking Industry
- Dena Bank and Vijaya Bank merged into Bank of Baroda in 2019
- SBI’s Associates Bank and Bharatiya Mahila Bank merged into State Bank of India in 2017
- ING Vyasa Bank merged into Kotak Mahindra Bank in 2016
- Bank of Rajasthan merged into ICICI in 2010
- State Bank of Indore merged into State Bank of India in 2009
- State Bank of Saurashtra merged into State Bank of India in 2008
- Centurion bank of Punjab merged into HDFC in 2008
- Krishna Bank merged into Centurion bank of Punjab in 2007
- Bharat Overseas Bank merged into Indian Overseas Bank in 2007
- United Western Bank Limited merged into IDBI bank in 2006
- Ganesh Bank of Kurundwad merged into Federal bank in 2006
- Bank of Punjab merged into Centurion Bank in 2005
- IDBI Bank merged into IDBI Bank Limited in 2005
- Global Trust Bank merged into Oriental bank of Commerce in 2004
- Nedungadi Bank merged into Punjab National Bank in 2003
- Banaras state bank merged into Bank of Baroda in 2002
- ICICI limited merged into ICICI bank Limited in 2002
- Bank of Madura merged into ICICI in 2001
- Times Bank merged into HDFC in 2000
- Sikkim bank merged into Union Bank of India in 1999
- Kashinath State Bank merged into State Bank of India in 1995
- Bank of Karad merged into Bank of India in 1994
- New Bank of India merged into Punjab National Bank in 1993
- Bank of Cochin merged into State Bank of India in 1985
- Lakshmi Commercial Bank into Canara Bank in 1985
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Last Updated: July 7,2020 12:00:28 AM