Merger Of 10 Biggest Public Sector Banks Into 4 ‘Almost’ Final; PMO Reviews PNB, Bank Of Baroda Plans
The biggest consolidation in the Indian banking space is now all set to happen, very fast. April 1st is the deadline, and preparations are underway in full swing.
Yesterday, PMO or Prime Minister Office has a briefing on this merger, and plans from PNB, Bank of Baroda and other ‘anchor’ banks were discussed.
It is expected that the Cabinet will approve the merger any moment now, thereby clearing the way for reducing 10 public sector banks to just 4.
Mega-Merger Of Banks: PMO Reviews The Blueprint
Yesterday, PMO office held a crucial meeting of all stakeholders, and asked all the concerned banks to share their blueprint, and plans.
The exact process of merger, along with the amalgamation of banking processes, and employees’ future were discussed.
Finance Minister Nirmala Sethuraman has already declared that the deadline of merging the public sector banks will not be extended beyond April 1st.
In fact, the Union Cabinet, which comprises of all the Ministers in the BJP Govt., is expected to give their approval any moment now.
The Mega-Merger Of Banks: How Will This Work?
As per the plan proposed by the Govt., the 10 major public sector banks will be merged, and in the end, only 4 banks will remain, which have been called as the anchor banks.
Oriental Bank of Commerce and United Bank would be merged into Punjab National Bank (PNB), which will make PNB as India’s 2nd biggest public sector bank, after SBI.
Syndicate Bank will be merged with Canara Bank, thereby creating India’s 4th largest public sector bank.
Union Bank, Andhra Bank and Corporation Bank will be merged, to create 5th largest public sector bank.
And Indian Bank and Allahabad Bank will be merged, to form India’s 7th largest public sector bank.
Respective Boards of these public sector banks have already approved the mergers, and things are in the final stage now.
In 2017, while there were 27 public sector banks, in 2020, once the merge happens, there will be only 12.
We will keep you updated, as more details come in.