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Mega Bank Merger 10 public sector bank (PSBs) merger is converted into 4 Mega Bank

Mega Bank Merger

Mega Bank Merger 10 public sector bank (PSBs) merger is converted into 4 Mega Bank.

Finance Minister Nirmala Sitharaman announced. “The cabinet has approved the consolidation of 10 Public sector bank (PSBs) into 4 Mega Bank.

Since 1963 India’s Banking sector has not developed personality to the growth in the size of the country.

India has only banked in the global top-100 same as countries that are a fraction of its size. Finland (about 1/11), Denmark (1/18th), etc.

The government takes big action in our finance sector that is PSBS merged and merged with the Public sector bank.

The government has recently announced a mega merge of 10 public sector banks into big banks.

After the merger, there will be 12 public sector banks (PSBS) in India.
The merger process mostly will complete by March 31, 2020.

In India, along with these 12 PSBs, around 25+ Private Sector Banks,40+ international Banks, and several Scheduled & Co-operative Banks also operating within the Indian Economy.

But the public sector banks own more than 75% of market share in India.

The Top & Final 12 Public sector Banks in India

       1. State Bank of India
Total Business: 52, 65, 00 Crores/52, 65 Lakh crores/$750 Billion Established: 1995
Headquarter: Mumbai, Maharashtra
Domestic Branches: 24,000

      2.Punjab National Bank
Total Business: 17, 94,526 crores/17.94 Lakh Crores/$260 Billion
Established: 1894
Headquarter: New Delhi, Delhi
Domestic Branches: 11,437

      3.Bank Of Baroda
Total Business: 16, 13,000 Crores/16.13 Lakh Crores/$230 Billion
Established: 1908
Headquarter: Vadodara, Gujarat
Domestic Branches: 9,583

     4.Canara Bank
Total Business: 15, 20,295 Crores/15.20 Lakh crores/$200 Billion
Established: 1906
Headquarter: Bengaluru, Karnataka
Domestic Branches: 10,342

      5.Union Bank Of India
Total Business: 14, 59,434 Crores/14.59 Lakh crores/$210 Billion
Established: 1919
Headquarter: Mumbai, Maharashtra
Domestic Branches: 9609

      6.Bank of India
Total Business: 9, 03,000 crores/9.03 lakhs crores/$130 Billion
Established: 1906
Headquarter: Mumbai, Maharashtra
Domestic Branches: 5,000

      7.Indian Bank
Total Business: 8, 07,589 crores/8.08 Lakh/$120 Billion
Established: 1907
Headquarter: Chennai, Tamil Nadu
Domestic Branches: 6,104

      8.Central Bank Of India
Total Business: 4, 68,000 crores/4.68 Lakh crores/$68 Billion
Established: 1911
Headquarter: Mumbai, Maharashtra
Domestic Branches: 4,666

      9.Indian Overseas Bank
Total Business: 3, 75,000 crores/3.75 lakh crores/54$ Billion
Established: 1937
Headquarter: Chennai, Tamil Nadu
Domestic Branches: 3,400

      10.UCO Bank
Total Business: 3, 17,000 crores/3.17 Lakh crores/$46 Billion
Established: 1943
Headquarter: Kolkata, West Bangla
Domestic Branches: 4,000

      11.Bank of Maharashtra
Total Bussiness: 2, 34,000 crores/2.34 Lakh crores/$34 Billion
Established: 1935
Headquarter: Pune, Maharashtra
 Domestic Branches: 1, 8997

      12.Punjab and Sindh bank
Total Business: 1, 71,000 crores/1.71 Lakh crores/$25 Billion
Established: 1908
Headquarter: New Delhi, Delhi
Domestic Branches: 1,554

So in this post, you will read which public sector banks are merged.

The string of Bank mergers under the honorable prime minister (Narender Modi ) regime.

There are three merged in India since 2017.

The First Bank merger happened in 2017 where 27 PSBS Merged in 21 PSBs.

In which SBI (State Bank of India) associated with Bhartiya Mahila Bank.

Second, the bank merged happened in 2018.

In which Vijaya Bank, Bank of Baroda and Dena Bank merged into separate Entity and become the second-largest public sector bank in the country in 2018.

The third merged happened in the present Time.

In which our finance Minister Nirmala Sitaraman announced 10 PSU Bank merged into 4 separate Entities. That’s the information you need to know.

NextGen PSBs Mega-Merger of PSBs

On August 30, 2019, Union Finance Minister Nirmal sitaraman unveiled a plan to 10 public sectors Bank into four entities.


She also gave details of how rs.55, 000 core of a recapitalization promised in the Budget will be divided among the banks.

finance minister
Finance Minister


10 public sectors Bank into four entities


1.     Oriental Bank of Commerce and United bank will merge into Punjab National Bank.


It will become the second-largest bank in India after SBI (state bank of India).


Branches: 11,437

Total Business: Rs.17. 95 Lakh Crore

Capital Infusion: Rs.16, 000 crore

Deposits: Rs.10, 43,659

No. of Employees: 1, 00,649

No. of ATMs: 13,897


2.     Syndicate Bank and Canara Bank will merge


It will become the Fourth largest Public sector bank in India.


Branches: 10,324

Total Business: Rs.15.20 Lakh Crore

Capital Infusion: Rs.6, 500 crore

Deposits: Rs.8, 58,930

No. of Employees: 89,885

No. of ATMs: 13,360



3.     Andhra Bank and Corporation Bank will merge with Union Bank of India.


It will Become the Fifth largest Public sector Bank in India.


Branches: 9.609

Total Business: Rs.14.59 Lakh Crore

Capital Infusion: Rs.11.700 crore

Deposits: Rs.8, 20,304

No. of Employees: 75,384

No. of ATMs: 13,463



4.     Allahabad Bank and Indian Bank will merge.


It will Become Seventh largest Public sector Bank in India.


Branches: 6.104

Total Business: Rs.8.08 Lakh Crore

Capital Infusion: Rs.2, 500 crore

Deposits:  Rs.4, 56,411

No. of Employees: 42,814

No. of ATMs: 4,728


Why so Much Bank Merged?


Reduce NPA (Non-Performing Assets)


The main logic is NPA’s the NPA (Non-Profit-Assets) that have been a persistent problem with public sector Bank the NPA’s and growth rate of NPA the bad loans have accumulated here.


Increase CASA (Current Account and saving account Balance) of Bank


Some other is CASA; it stands for (Current Account and saving Account Balance). That is the important thing because one of the major economies right now is down and public taking loans and banks giving away loans as smoothly.


Rational of Merger


There should do not be any distribution to the customers, and hence we are ensuring that the banks which are merging that they operate on the same technological platform said finance secretary Rajeev Kumar.


Capitalization of Banks


The Government says that it will capitalize on the 10 PSBs sector Bank.


The Government target USD 5 trillion economies through this the bank performs and consolidation.


The government would infuse Rs.55, 250 crores of capital in the 10 big banks for their growth and regularity compliance to boost the company.


Key Points to Remember


                    1.    The Finance Minister also that level loan recoveries have hit recovery of Rs.1,                              21,076 crores.
              Gross Non-Perfuming Assets (NPAs) - or bad loans-have come down from 8.65                                    Lakh crore to Rs.7.90 Lakh Crore.

                  2. The announcement on bank consolidation comes a day after the reserve bank of                                India (RBI) said its annual report that frauds in the banking system increased 79% to                            Rs.71, 543 Crore in the financial year 2018-19.

                 3. Liquidity support to NBFC and housing finance companies improved as the partial guarantee the scheme has been executed.

           An infusion of Rs.3, 300 crores has already been made and another Rs.30, 000 crore is in the

                4.    Nirmala Sivaraman said to avoid Nirav Modi like frauds in the PSBs the swift messaging the system has now been linked with the core banking system.

             Thanks for reading keep sharing with your friends this article.

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