The government earlier this year announced the merger of 12 public sector banks into 4. Nirmala Sitharaman the finance minister said that the motive of the second PSB merger is to make India a strong lender in the market. Because due to the poor Net Processing Asset (NPA) ratio of the small banks the PSB business is affected. So the merger is the requirement of the situation. If you don’t know about the merger bank list then read this article and know about the bank merger list and also find out why this list of bank merger is set by the government.

PSB Second merger bank list

The banks which are going to merge in the merger are as follows:

Canara and Syndicate bank: As decided by the government list of bank merger Syndicate bank get support from the Canara Bank and would stabilize its situation. Because, due to the higher NPA ratio Syndicate is facing a loss and after the merger probably its NPA ratio will be reduced. Which can help in lending a higher loan amount to the customers.


Oriental, united and Punjab National Bank: PNB is a bank that is known to everyone and provides effortless banking products to the customers. By taking the advantage government decides to merge United Bank Of India and Oriental Bank Of Commerce with PNB. because PNB is a powerful bank in the market and by merging with the Oriental and United bank it can become the second largest PSB in India.

Allahabad merger with Indian Bank: According to the merger bank list, Allahabad Bank is going to merge with Indian Bank. this merger could benefit both the banks and help in reducing their NPA and increasing the lending capacity.

Union Bank Of India merge with Andhra and Corporation Bank: The government merge 3 PSB into one PSB to increase its business and profits in the market. Also, the Andhra and corporation bank can easily avail loan to the customer when merged with the Union Bank Of India.

Why this list of Bank merger is set by the government?

The government decides to do the second PSB merger to increase the productivity of the banks. As, it is resulted in the case of the previous merger bank list of SBI, Bhartiya Mahila Bank, SBI associate banks. SBI becomes the largest PSB after the merger and this couldn’t happen without the merger. With the current list of bank merger government aims to reduce the PSBs in India so that there are lesser chances of any loss. After the merger, it would be easier for the RBI to manage the banks easily due to the lesser PSBs.


So, it can be said that with the merger not only smaller banks will get the support but also the customers get the benefit of wide ATM and Bank branches. Because not only the bank funds will be combined after the amalgamation their services also interconnected to each other, as it happens in Bank Of Baroda and Vijaya Bank merger. Now, you must have understood why this merger bank list set by the government because by combining the large bank with smaller banks it not only benefits the bank but customers also. 

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