Merger of banks - implementation from 1st April!
Posted on: 06/Mar/2020 10:03:50 AM
The central finance minister Nirmala Seetharaman informed that merger of banks will be implemented from April. The central cabinet has approved the proposal in this regard.
The central government announced 4 mergers concerning public sector banks last August.
Accordingly, the proposed merger arrangement is as under:
- Oriental Bank of Commerce & United Bank of India are being merged with Punjab National Bank.
- Syndicate Bank is to be merged with Canara bank.
- Allahabad Bank is to be merged with Indian Bank.
- Andhra Bank & Corporation Bank are linked with Union Bank of India.
This will be effective from 1st April.
The approval for the above mergers was given at a meeting of the central cabinet ministers presided by the Prime Minister Narendra Modi.
Central Finance Minister Nirmala Seetharaman, while in a session with the press informed:
The decisions regarding the above mergers were taken during a meeting of the directors of the above banks.
The central government has been in constant touch with the banks on this issue. There are no regulation problems in the process.
There were 27 banks, which were nationalized in the year 2017. After the above-proposed merger, the number of nationalised banks in the country is reduced to 12!
Last year, Dena Bank and Vijaya Bank were merged with Bank of Baroda. Earlier, all the supplementary banks of the State Bank of India (SBI) were linked with SBI.
