As per an exclusive report by Zee Business, it has been revealed that the mega-merger of 10 PSU banks into 4, which was supposed to happen by April 1st, will be delayed.
As per an unnamed source from the Finance Ministry, who is a senior official, the merger will happen, but after 6 months delay, atleast.
This means that the merger is likely to happen by October this year.
This clear several speculations and doubts about the mega merger, whose deadline was earlier announced as April 1st.
Recently, PMO had an indepth meeting with finance ministry officials, and bank officials, and critical issues such as bank employees, their future, merged banks’ projected income and more were discussed.
Infact, PMO even asked the bank officials to share presentations regarding the same.
Now, it seems that these critical issues haven’t been sorted yet, and it will take more time to resolve them.
Why The Merger Can Be Delayed?
As per the unnamed official from Finance Ministry, the merger of the PSU banks will most likely be delayed due to uncertainity over issues such as employees’ future, branch integrations, and regulatory compliances.
Besides, there is a need for additional capital to implement this merger, and as of now, no one knows who will pay for it.
The official said, “We are analysing branch integration, employees’ future and other regulatory procedures for the merger. Additional capital may also be required for implementing the merger. Considering these factors, the deadline of April 1 is difficult to be met,”
As per the official, Cabinet will likely approve the merger in their next meeting.
What Is The Merger Plan?
Punjab National Bank will merge with United Bank and Oriental Bank of Commerce
Syndicate Bank will merge with Canada Bank
Allahabad will merge with Indian Bank
Andhra Bank and Corporation Bank will merge with Union Bank of India.
The merger of Vijaya Bank and Dena Bank with Bank of Baroda has been approved, but even after 10 months, the operations haven’t been consolidated yet.
We will keep you updated, as more details come in.