This is PM Modi’s Big Bank Theory, and right now, the wave of mergers is engulfing entire banking spectrum of India.
India’s Finance Minister Nirmala Sitharaman has just announced four mega mergers of banks, which will change Indian banking paradigms as we know it.
The biggest of them all is the merger of PNB with OBC and United Bank, which will create India’s 2nd biggest public banking platform after SBI.
More details here..
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PNB Merged With OBC, United Bank
Govt has announced the merger of Punjab National Bank with Oriental Bank of Commerce and United Bank, which has created India’s 2nd biggest Govt or public sector bank.
This new entity will have an annual turnover of Rs 17.95 lakh crore, which is 1.5 times the size of PNB’s volume. Total of 11,437 branches will directly fall under this new mega banking entity.
Since CBS (Finacle) platform is active on all these three banks, the transition will be swift.
PNB has around 78,000 employees, and there can be a significant loss in jobs, since several thousand branches will be merged.
Canara Bank Merges With Syndicate Bank
The 2nd biggest merger which has been announced is between Canara Bank and Syndicate Bank, which will create India’s 4th largest public sector bank.
This new banking entity will command a business of over Rs 15 lakh crore, out of which, Rs 10 lakh crore will come from Canara Bank alone.
Total of 9609 branches will fall under this merger, and total of 89,000 employees will now come under one roof.
Layoffs are expected here as well.
Indian Bank Merger With Allahabad Bank
The third biggest merger announced today is between Indian Bank and Allahabad Bank, which has created India’s 7th biggest public sector bank with a total of Rs 8 lakh crore turnover.
Union Bank Merged With Andhra Bank, Corporation Bank
And the fourth merger announced today is between Union Bank, Andhra Bank and Corporation Bank, which has created a banking behemoth of Rs 14 lakh crore annual turnover and 75,000 employees.
They will now command over 9000 bank branches in South and West India mainly.
With these mergers, now remains only 12 PSBs or Public Sector Banks, down from 27 earlier.
Stock market has reacted positively to the news of these mergers.
We will keep you updated, as more details come in.
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