Merger of 10 Public Sector Banks into 4 comes effective from April 1st 2020
Introduction-
The Finance Minister, Nirmala Sitharaman had announced in August 2019, the merger of 10 public sector banks into 4 w.e.f. 01.04.2020.
Earlier, in April 2019, Vijaya Bank and Dena Bank got merged with Bank of Baroda & in April 2017, State Bank of India merged with itself five of its associate banks- State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore, State Bank of Hyderabad, and State Bank of Patiala also along with Bharatiya Mahila Bank.
As per latest merger w.e.f. 01.04.2020-
- Oriental Bank of commerce (OBC) and United Bank of India (UBI) will be merged with Punjab National Bank (PNB). After this merger, PNB will become second biggest public sector bank after the State Bank of India (SBI)
- Syndicate bank will be merged with Canara Bank. After this merger, Canara Bank will be fourth biggest public sector bank.
- The Allahabad bank will be merged with Indian Bank. After this merger, Indian Bank will be seventh biggest public sector bank.
- Andhra Bank and Corporation Bank will be merged with Union Bank of India. After this merger, Union Bank of India will be fifth biggest public sector bank.
Now the total number of public sector banks will be 12 in 2020, the scenario will be shown as six merged banks and six independent banks as detail below-
Merged Banks
1. State Bank of India 2. Bank of Baroda 3. Punjab National Bank 4. Canara Bank 5. Union Bank of India 6. Indian Bank.
Independent Banks-
1. Indian Overseas Bank 2. UCO Bank 3. Bank of Maharashtra 4. Punjab and Sind Bank 5. Bank of India 6. Central Bank of India.