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Latest Bank Merger of 10 PSBs into 4, List of Bank Mergers in India…

Mega-Bank Merger 2020

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.

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How many Types of Bank Mergers?

There are 3 Types of Merger

  1. Horizontal Merger: Which increase Market Share
  2. Vertical Merger: Which exploit existing synergies
  3. Concrete merger: Expand the product Offering

Motives for Bank Merger of 10 PSBs 2020

  1. Value Creation
  2. Diversification
  3. Acquisition of Assets
  4. Increase in Financial capacity
  5. Tax purpose
  6. Incentives for managers etc.

List of Bank Mergers in Indian Banking Industry

  1. Dena Bank and Vijaya Bank merged into Bank of Baroda in 2019
  2. SBI’s Associates Bank and Bharatiya Mahila Bank merged into State Bank of India in 2017
  3. ING Vyasa Bank merged into Kotak Mahindra Bank in 2016
  4. Bank of Rajasthan merged into ICICI in 2010
  5. State Bank of Indore merged into State Bank of India in 2009
  6. State Bank of Saurashtra merged into State Bank of India in 2008
  7. Centurion bank of Punjab merged into HDFC in 2008
  8. Krishna Bank merged into Centurion bank of Punjab in 2007
  9. Bharat Overseas Bank merged into Indian Overseas Bank in 2007
  10. United Western Bank Limited merged into IDBI bank in 2006
  11. Ganesh Bank of Kurundwad merged into Federal bank in 2006
  12. Bank of Punjab merged into Centurion Bank in 2005
  13. IDBI Bank merged into IDBI Bank Limited in 2005
  14. Global Trust Bank merged into Oriental bank of Commerce in 2004
  15. Nedungadi Bank merged into Punjab National Bank in 2003
  16. Banaras state bank merged into Bank of Baroda in 2002
  17. ICICI limited merged into ICICI bank Limited in 2002
  18. Bank of Madura merged into ICICI in 2001
  19. Times Bank merged into HDFC in 2000
  20. Sikkim bank merged into Union Bank of India in 1999
  21. Kashinath State Bank merged into State Bank of India in 1995
  22. Bank of Karad merged into Bank of India in 1994
  23. New Bank of India merged into Punjab National Bank in 1993
  24. Bank of Cochin merged into State Bank of India in 1985
  25. Lakshmi Commercial Bank into Canara Bank in 1985

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Last Updated: July 7,2020 12:00:28 AM

What is Bank Merger?

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.

How many Types of Bank Mergers?

There are 3 Types of Mergers. These are
Horizontal Merger: Which increase Market Share
Vertical Merger: Which exploit existing synergies
Concrete merger: Expand the product Offering

What is the List of Banks that got merged in 2020?

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).

How many PSBs got merged in April 2020?

10 PSBs.
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.

What is the complete List of Bank Mergers till 2020 in Indian Banking Industry?

The List of Bank Mergers in Indian Banking Industry are as follows:
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
For more information Read Bank merger 2020-21.

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