Govt: Mega-Merger Of 10 PSU Banks On April 1st; Cabinet, Bank Boards Has Approved All Mergers
Govt of India has made it clear that the mega-merger of 10 PSU banks will come into effect from April 1st.
There will be no delay, and no more doubts.
Mega-Merger Is Now Approved; April 1st Is The Date
Finance Minister Nirmala Sethuraman has declared that since all the bank boards have approved this merger, and the Cabinet too has approved it, there will be no more delays.
This puts into rest theories about a delay in merger of 10 PSU banks, which will reduce the number of PSU banks to just 4.
It was reported earlier that the mega-merger of the 10 PSU banks can be delayed, since there are lots of regulatory approvals that are required, and also there is a need for a special budget for merging these banks.
But after the statements issued by Finance Minister, it is clear that there will be no delay, and no regulatory bottlenecks.
The Minister said, “The Union Cabinet has given its go-ahead for the merger proposal and the government has been in regular touch with these banks”, adding, “The banks’ merger is on course and decisions have already been taken by the respective bank boards,”
Overview Of The Bank Mergers
This is one of the biggest mergers of PSU banks in India, ever since India declared Independence in 1947.
This mega-merger of PSU banks will reduce the total number of PSU banks to just 4, from 27 a year back.
As per the plan of the Govt., which will come into effect from April 1st, 2020, Punjab National Bank will merge with United Bank of India and Oriental Bank of Commerce, which will create India’s 2nd biggest PSU bank after SBI.
At the same time, Syndicate Bank and Canara Bank will merge.
Allahabad Bank and Indian Bank will be merged.
And Andhra Bank along with Corporation Bank will be fully merged with Union Bank of India.
Under the same mission to merge PSU banks, Dena Bank was merged with Vijaya Bank and Bank of Baroda last year..
Before that, 5 associate banks of SBI and Bharatiya Mahila Bank were merged with State Bank of India.
We will keep you updated, as more details come in.