Bank Merger List, Current Affairs Related to Bank

Home » Articles » Bank Merger List

Bank Merger List

Bank Merger List : In order to improve the effectiveness of the Banking system in India, the Central Government has announced the merger of many Public sector banks. The merger process is going on for the last few years. On March 4, 2020, the Union cabinet approved the consolidation of Public Sector Banks with effect from April 1, 2020.

This involved the amalgamation of the Oriental Bank of Commerce (OBC) and United Bank of India into Punjab National Bank(PNB), Syndicate Bank into Canara Bank, Andhra Bank and Corporation Bank into Union Bank of India, and Allahabad Bank into Indian Bank. Before this, in January 2019, the cabinet had approved the unification of Vijaya Bank, Dena Bank, and Bank of Baroda. Let us go on to learn everything about the Bank Mergers List here in this article.

Bank Merger List :

The government has announced capital infusion worth more than 55,000 crore into public sector banks. Check the table below for information:

Navratri Sale is Here! 40% OFF+4 Months Validity on Banking Super Elite! Use Code: “CELEB“: Click Here

PSBsCapital Infusion (In ₹)
PNB16,000 Crore
Union Bank of India11,700 Crore
Bank of Baroda7,000 Crore
Indian Bank2,500 Crore
Indian Overseas Bank3,800 Crore
Central Bank of India3,300 Crore
UCO Bank2,100 Crore
United Bank of India1,600 Crore
Punjab and Sind Bank750 Crore

Mega Bank Merger List – Updated:

An agreement between the acquiring bank and the merged bank to combine their assets and liabilities into a single entity is known as a bank merger. Ten public sector banks were combined into four, as a result of the merger. However, regionally focused institutions like IOB, Bank of Maharashtra, Punjab and Sind Bank, Bank of India, Central Bank of India, and UCO Bank will continue to exist independently.

The successful merger of the Bharatiya Mahila Bank and the State Bank of India with five associate banks and 10 PSBs into four further inspired this endeavour.

State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore, State Bank of Patiala, and State Bank of Hyderabad are the five affiliate banks that amalgamated into the State Bank of India. The State Bank of India has now joined the top 50 banks in the world as a result of the merger.

Top PSUs like Punjab National Bank, Canara Bank, Bank of Baroda, Indian Bank, and Union Bank of India have now grown into enormous companies with a vast network of branches by acquiring 3–4 branches under its banner.

Mega Bank Merger List

Here, we have compiled the detailed Megabank merger list. StayTuned for updated details.

Anchor BankBanks to be Merged with Anchor BankCombined Domestic Branches
Punjab National BankOriental Bank of Commerce + United Bank of India11,437
Canara BankSyndicate Bank10,342
Indian BankAllahabad Bank
Bank Of BarodaDena Bank +Vijaya Bank9,490
Union Bank of IndiaAndhra Bank + Corporation Bank9,609
State Bank of India (SBI)State Bank of Bikaner and Jaipur (SBBJ) + State Bank of Hyderabad (SBH) + State Bank of Mysore (SBM) + State Bank of Patiala (SBP) + State Bank of Travancore (SBT) + Bharatiya Mahila Bank24,000 (approx)

Important information about bank mergers that you should be aware of:

There are a few things we should be aware of as the above-mentioned bank merger takes effect. Here is a rundown of all the pertinent information about the April 1 bank merger.

  • Customers of the merging banks will now be treated the same as customers of the merged banks. Depositors are among these customers.
  • There will be a total of 12 PSU banks following the merger, which will take effect on April 1, 2020.
  • Six banks will be independent of the 12 PSUs: Indian Overseas Bank, UCO Bank, Punjab and Sindh Bank, Central Bank of India, Bank of India, and Bank of Maharashtra.
  • The remaining six banks – State Bank of India (SBI), Union Bank of India, Punjab National Bank, Canara Bank, Indian Bank, and Union Bank of India – will be merged.

Mega Bank merger List

In a merger, there is an anchor bank and an amalgamating bank or banks, where the latter gets merged with the former. 

1. Mega Bank Merger List

Read the Bank Merger List 2019-2020 below.

1. Punjab National Bank (PNB) will take over Oriental Bank of Commerce (OBC) and United Bank of India (UBI) to become the country’s largest lender after the State Bank of India (SBI) in terms of business.

2. Canara Bank will subsume Syndicate Bank;


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


4. Allahabad Bank will become part of the Indian Bank.
With this, the number of public sector banks in India will come down to 12.

Six merged banks and six independent public sector banks.

1.1. Six Merged Banks are:

  • SBI (State Bank of India),
  • Bank of Baroda,
  • Punjab National Bank (PNB),
  • Canara Bank,
  • Union Bank of India,
  • Indian Bank

1.2. Six Independent Banks are: 

  • Indian Overseas Bank,
  • UCO Bank,
  • Bank of Maharashtra,
  • Punjab and Sind Bank,
  • Bank of India,
  • Central Bank of India.

This is an important development for the stressed and ailing Banking Sector of the country.

So without further ado, let us learn about it in its entirety in this blog of “Mega Bank Merger List”. 


2. Brief about the Bank Merger List 2019-2020

Union Finance Minister Nirmala Sitharaman on 30th August 2019 announced the consolidation of state-owned banks (PSBs) in which 10 PSBs were merged to form 4 bigger lenders to strengthen the Banking sector struggling with bad loans. The move was aimed at cleaning up the Bank Balance Sheets and creating lenders on a global scale that can support the economy’s surge to $5 trillion by 2024. 

“Having done two rounds of bank consolidation earlier, this is what we want to do for a robust banking system and a $5-trillion economy. We are trying to build next-generation banks, big banks with the capacity to enhance credit,” FM Sitharaman said. The key factors for the mergers were: Technological platform, Customer reach, Cultural similarities, and Competitiveness, Finance Secretary Rajiv Kumar added.

Bank Merger List 2019

Source – Economic Times


3. Reasons for Bank Merger

1. A key reason for the merger is the weight of mounting bad loans over the years.

2. Ostensibly aimed at improving operating efficiency, governance, and accountability and facilitating effective monitoring.

3. Creating globally stronger banks, doing away with needless overlaps in operations and infrastructure, and ushering in economies of scale to bring down costs have always been at the heart of any consolidation drive.

4. The move was aimed at creating next-generation banks with a strong national presence and global outreach accompanied by the enhanced capacity to increase credit to the various important sectors of the economy.


4. Challenges to be Faced in Way of Merger

1. Managing Cultural Differences,

2. Managing Manpower


3. Branch Rationalization

4. Technological Integration & 

5. Making Geographically Compatible Banks


5. Recapitalization and Governance Reforms

1. The consolidation exercise will be accompanied by recapitalization to the tune of Rs 55,000 crore (out of Rs 70,000 crore budgeted for 2019-20) capital infusion in public sector lenders as also governance reforms.

2. The biggest chunk of recapitalization will go to PNB, at Rs 16,000 crore, followed by Union Bank at Rs 11,700 crore — the two anchor banks for the merger. Bank of Baroda is set to get Rs 7,000 crore as capital and Canara Bank Rs 6,500 crore.


3. Punjab and Sind Bank will get Rs 7,050 crore; Central Bank of India will get Rs 3,300 crore; UCO Bank will get Rs 2,100 crore, and Bank of Baroda will get Rs 600 crore.

As part of the governance reforms, Sitharaman said non-official directors at state-run lenders will have to function like independent directors on company boards. Boards will be peer-reviewed. The number of executive directors has been raised to four and boards have been given the mandate to reduce and rationalize board committees. Public sector banks will also be able to appoint a chief risk offer at market rates.

The decision to merge banks is a good remedial measure, but continued focus on corporate governance and adherence would be of prime importance. 


6. How the Financials of Merged Bank Entities will change? 

Bank Merger List 2019

Source – Economic Times & Hindu Business Line

1. Among the four mergers, the combined entity of Allahabad Bank and Indian Bank will have the lowest net NPA (non-performing assets), while boasting the highest provisioning coverage and strongest CASA (current account and savings account) franchise.

2. “Indian Bank’s merger with Allahabad Bank will help it emerge as a strong entity with reach, improving provisioning coverage ratio (PCR) and strong CASA ratio,” suggests Bumb. The merged entity also has the least branch overlap. However, this diversity in cultures may prove challenging during integration and may also lend no major cost benefits from the merger.

3. Further, Indian Bank will see a deterioration in its asset quality owing to Allahabad Bank’s unhealthy loan book.

4. Greater synergies are likely to accrue from the merger of Syndicate Bank with Canara Bank as both have similar cultures and geographical presence. The merged entity will become the fourth-largest lender in the country, with better provisioning and capital ratios post-merger.


5. The combined entity of Union Bank will see improved provisioning and capital ratio after the merger with Andhra Bank and Corporation Bank. However, its asset quality position will take a hit, with the merged bank likely to report the highest gross NPA ratio among the four entities.

Mega Bank Merger List 2019

Source – Economic Times


7. Effect on Customers of Banks

Retail customers of the amalgamating banks are likely to get directly affected whereas customers of the anchor bank are not likely to face much change. However, shareholders of all banks involved in the mergers are bound to be impacted.


8. Effect on Manpower Hiring

Reduction in fresh recruitment will be a natural consequence of any merger as the rationalization of branches and staff will have to be worked out to optimize resources,’’ a senior PNB official. It is likely to impact the overall job market scenario.


9. Core Banking Solutions of the Banks to be Merged

Bank Merger List 2019

Source – Economic Times

This was all from us in this blog of Bank Merger List. We hope that you liked the information useful about the Bank Merger List. We hope that you liked our blog post on Bank Merger List 2022 and were able to enhance your general knowledge. Keep visiting Oliveboard. Happy Learning 😀



UCO Bank Merged with Which Bank

No, UCO Bank not Merged with any Bank. UCO bank is region centric, it will remain as independent entities. So UCO bank not going to be merged with any of the bank.

Central Bank of India Merged with Which Bank

No, Central Bank of India not Merged with any Bank. Central Bank of India is region centric, it will remain as independent entities. So Central Bank of India not going to be merged with any of the bank.

Indian Bank Merged with Which Bank

The Indian Bank merged with Allahabad Bank. Indian bank merged on 13th and 14th February 2021.

Corporation Bank Merged with Which Bank

In 2022, it was merged with the Union Bank of India along with Andhra Bank. So Corporation Bank Merged with Union bank.

Bank of Maharashtra Merged with Which Bank

No, Bank of Maharashtra not Merged with any Bank. Bank of Maharashtra is region centric, it will remain as independent entities. So Bank of Maharashtra not going to be merged with any of the bank.

Canara Bank Merged with Which Bank

Canara Bank merged with Syndicate Bank. After that syndicate become the fourth largest public sector bank in india.

Indian Overseas Bank Merged with Which Bank

No, Indian Overseas Bank not Merged with any Bank. Indian Overseas Bank is region centric, it will remain as independent entities. So Indian Overseas Bank not going to be merged with any of the bank.

Bank Merger Frequently Asked Questions

Is merger good for banks?

Bank Merger is done to reduce the NPA(Non Performing assets) of a particular bank. Though it may or may not provide good results in long run.

How many banks merged recently?

The complete list of the recently merged bank has been provided in the blog above.

Is the government planning to merge with any other bank in the near future?

The official merger of any other bank in the near future if done, will be notified by the government.

Where could I get the complete list of Bank Merged in the recent past?

You can get the complete list of Banks merged in the recent past in this blog.

How Many Public Sector Banks are left after the merger?

There are totally 12 Public Sector Banks left out of 27 after merger.

What does Bank Rationalization Mean?

If your bank’s home branch is in a neighborhood where the acquiring bank’s branch office also has a branch, the acquired bank’s branch is very likely to be closed down.

Which bank is acquired Indian Bank?

Allahabad Bank acquired Indian Bank


Navratri Sale is Here! 40% OFF+4 Months Validity on Banking Super Elite! Use Code: “CELEB“: Click Here

BANNER ads

Leave a comment