New Delhi: Finance Minister Nirmala Sitharaman on Friday announced the merger of 27 public sector banks into 12, the biggest being the merger of Punjab National Bank, Oriental Bank of Commerce and United Bank.
The three banks together will merge to form India’s second-largest bank after the State Bank of India, with Rs 17.95 lakh crore business and 11,437 branches.
Nirmala Sitharaman also announced the merger of Canara Bank and Syndicate Bank; Union Bank of India, Andhra Bank and Corporation Bank; and Indian Bank and Allahabad Bank.
Merged With Allahabad Bank, the Indian Bank will be the seventh-largest public sector bank with the business of Rs 8.08 lakh crore, while Union Bank of India, with Andhra Bank and Corporation Bank, shall become the fifth largest public sector bank now.
“We shall continue with two banks which will have a national presence – Bank of India with Rs 9.3 lakh crore business size and Central Bank with Rs 4.68 lakh crore business size,” Sitharaman said.
Banking Secretary Rajeev Kumar announced that there would be no retrenchment in any of the banks. “Rather employee benefits and human resource conditions will improve. Best practices will be followed. We will especially ensure that no employee is negatively affected because of this,” he said.
Kumar also assured that the move would not cause disruption in the economy. “This is exactly the right time for these consolidations. This will not cause any disruption because anchor banks will draw from their experience. The synergy will boost the economy and provide great stability.”
Here’s a list of the public sector banks after amalgamation in the descending order of their business size:
1. State Bank of India – Rs 52.05 Lakh Crore
2. PNB + OBC+ United Bank of India – Rs 17.94 lakh crore
3. Bank of Baroda (including Vijaya and Dena) – Rs 16.13 lakh crore
4. Canara Bank + Syndicate Bank – Rs 15.20 lakh crore
5. Union Bank + Andhra Bank + Corporation Bank – Rs 14.59 lakh crore
6. Bank of India – Rs 9.03 lakh crore
7. Indian Bank + Allahabad 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
(With DNA inputs)