{"id":1303153,"date":"2025-12-02T13:57:56","date_gmt":"2025-12-02T08:27:56","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1303153"},"modified":"2025-12-02T13:58:27","modified_gmt":"2025-12-02T08:28:27","slug":"12-govt-banks-can-be-merged-into-6-mega-banks","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/12-govt-banks-can-be-merged-into-6-mega-banks\/","title":{"rendered":"12 Govt Banks Can Be Merged Into 6 Mega Banks"},"content":{"rendered":"\n<p>India\u2019s banking sector is gearing up for another major overhaul as the Union government revisits PSU bank consolidation. The objective is clear: build <strong>world-class, globally competitive public sector banks<\/strong> capable of supporting India\u2019s <a href=\"https:\/\/www.news18.com\/photogallery\/business\/big-bank-shake-up-coming-govt-may-merge-12-psu-banks-into-6-mega-lenders-shil-9732670.html\">expanding<\/a> economy, rising credit demands, and ambitious infrastructure growth plans.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/12\/Untitled-design-1-4-1280x720-1-1024x576-1280x720-1-1024x576-1.jpeg\" alt=\"12 Govt Banks Can Be Merged Into 6 Mega Banks\" class=\"wp-image-1303168\" srcset=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/12\/Untitled-design-1-4-1280x720-1-1024x576-1280x720-1-1024x576-1.jpeg 1024w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/12\/Untitled-design-1-4-1280x720-1-1024x576-1280x720-1-1024x576-1-300x169.jpeg 300w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/12\/Untitled-design-1-4-1280x720-1-1024x576-1280x720-1-1024x576-1-768x432.jpeg 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why Another Round of Bank Mergers?<\/strong><\/h2>\n\n\n\n<p>India currently has <strong>12 public sector banks<\/strong>, down from 27 before the 2017\u20132020 consolidation phase. The government\u2019s vision is to reduce this number to <strong>6 or 7 strong mega-banks<\/strong> that can:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Compete with global financial giants<\/li>\n\n\n\n<li>Improve credit flow to industries<\/li>\n\n\n\n<li>Strengthen digital banking systems<\/li>\n\n\n\n<li>Reduce operational costs<\/li>\n\n\n\n<li>Improve asset quality and lower NPAs<\/li>\n\n\n\n<li>Support India\u2019s USD 5 trillion economy target<\/li>\n<\/ul>\n\n\n\n<p>State Bank of India (SBI), the country\u2019s largest bank, has publicly backed the next phase of mergers, citing better market value and stronger balance sheets as key benefits.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Which Banks Could Merge Next?<\/strong><\/h2>\n\n\n\n<p>Discussions are currently centred around <strong>six PSU banks<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Bank of India<\/li>\n\n\n\n<li>Indian Overseas Bank<\/li>\n\n\n\n<li>Central Bank of India<\/li>\n\n\n\n<li>Bank of Maharashtra<\/li>\n\n\n\n<li>UCO Bank<\/li>\n\n\n\n<li>Punjab &amp; Sind Bank<\/li>\n<\/ul>\n\n\n\n<p>These banks could be merged with each other, absorbed by larger banks, or grouped strategically based on financial health, technology readiness, and regional strengths.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>A Look Back: Major Mergers That Shaped India\u2019s Banking Landscape<\/strong><\/h2>\n\n\n\n<p>India has undergone multiple waves of bank mergers since the 1990s.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2017 \u2013 The SBI Mega Merger<\/strong><\/h3>\n\n\n\n<p>SBI absorbed <strong>five associate banks<\/strong> and <strong>Bharatiya Mahila Bank<\/strong>, making it India\u2019s first truly large-scale national bank.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2019 \u2013 Bank of Baroda Takes the Lead<\/strong><\/h3>\n\n\n\n<p>Bank of Baroda merged with <strong>Dena Bank<\/strong> and <strong>Vijaya Bank<\/strong>, becoming the third-largest PSU bank.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2020 \u2013 The Biggest Merger Wave<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>PNB + OBC + United Bank<\/strong><\/li>\n\n\n\n<li><strong>Canara Bank + Syndicate Bank<\/strong><\/li>\n\n\n\n<li><strong>Union Bank + Andhra Bank + Corporation Bank<\/strong><\/li>\n\n\n\n<li><strong>Indian Bank + Allahabad Bank<\/strong><\/li>\n<\/ul>\n\n\n\n<p>This reduced the number of PSU banks to 12.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What Happens Next?<\/strong><\/h2>\n\n\n\n<p>While no formal announcement has been made, historically major mergers roll out in <strong>April<\/strong>, aligning with the new financial year. Reports suggest that unlike the 2020 bulk mergers, the upcoming consolidation may be executed in <strong>2\u20133 phases<\/strong> for smoother integration, capital planning and system alignment.<\/p>\n\n\n\n<p>With India\u2019s economy expanding, consolidation aims to create <strong>stronger, digitally advanced, globally competitive banks<\/strong> that can support large-scale national development.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\"><\/h1>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s banking sector is gearing up for another major overhaul as the Union government revisits PSU bank consolidation. The objective is clear: build world-class, globally competitive public sector banks capable of supporting India\u2019s expanding economy, rising credit demands, and ambitious infrastructure growth plans. Why Another Round of Bank Mergers? India currently has 12 public sector [&hellip;]<\/p>\n","protected":false},"author":30,"featured_media":1303168,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[867,4364],"class_list":["post-1303153","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-govt-banks","tag-merger"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>12 Govt Banks Can Be Merged Into 6 Mega Banks - Trak.in - Indian Business of Tech, Mobile &amp; Startups<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trak.in\/stories\/12-govt-banks-can-be-merged-into-6-mega-banks\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"12 Govt Banks Can Be Merged Into 6 Mega Banks - Trak.in - Indian Business of Tech, Mobile &amp; Startups\" \/>\n<meta property=\"og:description\" content=\"India\u2019s banking sector is gearing up for another major overhaul as the Union government revisits PSU bank consolidation. 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