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MERGER OF PUBLIC SECTOR BANKS, INDIA, 2019


Ten Public Banks to be Merged into four now, it was announced by Finance Minister Sitharaman on dated 30th September 2019.

Mergers of Public Sector Banks of India

1. Punjab National Bank  With Oriental Bank + United Bank

2. Canara Bank with Syndicate Bank

3. Union Bank with Andhra Bank and Corporation Bank

4. Indian Bank with Allahabad Bank

Basically, its not a merger, it is amalgamation. Because in every group, one Bank will be lead bank that will acquire another bank that is being merged with larger one.


Four Anchor Banks in this Merger

1. Punjab National Bank
2. Canara Bank
3. Union Bank of India
4. Indian bank

Capital Infusion to PSU Banks

Finance Minister announce for Capital Infusion also to the PSU banks

  • PNB - 16000 Crore
  • UBI - 11700 Crore
  • Bank of Baroda - 7000 Crore
  • Canara Bank - 6500 Crore
  • Indian Bank - 2500 Crore
  • IOB - 3800 Crore
  • Central Bank of India - 3300 Crore
  • UCO Bank - 2100 Crore
  • United Bank - 1600 Crore
  • Punjab & Sindh Bank - 750 Crore  
Ranking of Public Sector Banks after Merger or Amalgamation

Now after this merger total Public Sector Bank in India will be reduced from 27 to 12.
Ranking of PSU banks based on Business size will be as follow - 

Bank Name & Business Size (In Lakh Crore)

1. State Bank of India - Rs 52 Lakh Crore
2. Punjab National Bank + - Rs 17.94 Lakh Crore
3. Bank of Baroda + - Rs 16.13 Lakh Crore
4. Canara Bank + - Rs 15.20 Lakh Crore
5. Union Bank of India + - Rs 14.59 Lakh Crore
6. Bank of India + - Rs 9.03 Lakh Crore
7. Indian Bank + - Rs 8.08 Lakh Crore
8. Central Bank of India + - Rs 4.68 Lakh crore

9. Indian Overseas Bank + - Rs 3.75 Lakh crore
10. UCO Bank + - Rs 3.17 Lakh crore
11. Bank of Maharashtra + - Rs 2.34 Lakh crore
12. Punjab & Sindh Bank + - Rs 1.71 Lakh crore




Three Phases of Merger of PSU Banks

In first phase all associate banks of State Bank was merger with State Bank of India.
In Second phase Dena Bank and Vijaya Bank were merged with Bank of Baroda.
And now in Third Phase 10 different PSU banks merged into and reduced to four only.

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