After the announcement by the finance minister of India, Nirmala Sitharaman the merger of 10 public sector banks is soon going to happen. The banks which are going to merge may provide many benefits to the small PSBs, such as merger supports the small banks who are facing a bad financial situation due to their higher Non-Processing Asset (NPA) ratio. Earlier, list of merger of banks in India is SBI Bank, Bharatiya Mahila Bank, 5 associate SBI banks, Bank Of Baroda (BOB), Vijay & Dena Bank that proved to be the most successful mergers. In this article, know which are the banks who are going to merge in this second round of merger and what are their benefits.
The Recent List of merger of banks in India
In the first round of merger State Bank of India (SBI) had merged with five associate banks and Bharatiya Mahila Bank while on the other hand Dena Bank and Vijaya Bank was merged with Bank of Baroda (BOB). List of merger of banks in India for the second round is as follows:
Punjab National Bank (PNB) merging with Oriental Bank Of Commerce and United Bank Of India:
The Punjab National Bank is going to combine with Oriental Bank and United Bank, that provide support to the united and oriental bank and help in increasing their lending capacity. After the merger, PNB can have an Rs.18 lakh crore business with 11,437 branches across India, which makes PNB the 2 largest public sector bank in India.
Canara Bank will combine with Syndicate Bank:
Canara bank is going to merge with Syndicate Bank, which is a small commercial bank post-merger Canara Bank becomes the 4 largest public sector bank in India with an Rs. 15.2 lakh crore business and 10,342 branches across India.
Allahabad Bank merger with Indian Bank:
The Allahabad Bank & Indian Bank merger will result in the 7 largest PSB, that makes it a strong global lender post-merger, total business of Allahabad Bank is going to be INR 8.08 lakh crore.
Union Bank Of India would merge with Andhra & Corporation Bank:
Union Bank Of India is going to merge with Andhra Bank and Corporation Bank. The merger will provide the benefit of INR 14.6 lakh crore business to the union bank with 9,609 branches all over India.
Benefits of the merger of banks in India
Post-merger there are some benefits this amalgamation will provide to the banks, such as it helps in increasing the lending capacity of the banks because small and regional banks are not able to lend a higher loan amount to the customers. The bank’s fund is also combined which will make the large banks like PNB a strong global lender with low NPA ratio. The government of India has invested INR 1 trillion in PSB merger in the last round of the bank merger that makes Bank Of Baroda the 2 largest public sector banks in India after the SBI. The recent list of merger of banks in India is also going to provide benefits with expanding bank branches and ATMs.