Merger of Punjab National Bank, Union Bank, Bank of India on cards: report
30 Apr 2019
The government is reported to have mooted a fresh round of bank mergers that would see the amalgamation of Punjab National Bank, Union Bank and Bank of India.
The government may consider merging of Punjab National Bank, Union Bank of India and Bank of India, The Economic Times reported citing a finance ministry official.
The move follows the formal merger of state-run Bank of Baroda, Vijaya Bank and Dena Bank on 1 April 2019.
The government may soon invite the selected lenders to discuss options as it is looking to start the process sometime around the second or the third quarter of the fiscal year 2019-20, the report said.
The report, citing the official, also official it is not necessarily a three-way merger and that the government is only attempting various combinations.
The government merged the State Bank of India and its subsidiaries with the newly created Bharat Manila Bank to create a new banking behemoth, following which PSBs Bank of Baroda, Vijaya Bank and Dena Bank were formally amalgamated on 1 April 2019.
The proposed merger is the third in the PSB merger wave and the report said, the government may not, in future, follow a three-bank merger formula and will look at different combinations.