Banks Merger in India: Once again the discussion on merger of banks has started in the country. News of the merger of four banks has started coming from a document posted on social media platform X.
The next line for merger of banks could be Bank of India, Bank of Maharashtra, Union Bank and UCO Bank. The parliamentary committee may start discussing the possible merger of these four banks early next year. After this merger, two big banks will emerge in the country.
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Reuters has given this report quoting sources in the Finance Ministry. According to this, the government can start talks with the representatives of UCO Bank and Union Bank of India on January 2, 2024, after which the possibilities of merger of Bank of Maharashtra and Bank of India will be explored on January 6, 2024. These meetings will be held in Mumbai and Goa. However, sources have described it as a routine exercise. This document has the signature of Ramesh Yadav, Deputy Secretary to the Government of India. This government document was released on 16 November.
UCO bank to merge with Union Bank. Bank of Maharashtra to merge with Bank of India. Both did QIP earlier in the month.
Even though it was announced in Budget 2022, names were always up in the air regarding which smaller PSU banks will merge with larger PSBs. This is informal… pic.twitter.com/35ynnKhkdL
— Amit Kumar Gupta (@amitgupta0310) December 17, 2023
Important financial institutions of the country were called
According to the report, apart from these four banks, Chairman of Reserve Bank of India (RBI), LIC, IRDAI and NABARD have also been called through this letter. Besides, in this letter, the MD and CEO of New India Insurance Company, United India Insurance Company, Oriental Insurance Company, National Insurance Company and SBI Life Insurance have also been invited.
Merger of 10 government banks took place in 2019
The central government had merged 10 government banks of the country in 2019. After this mega merger, 4 government banks came into existence. Earlier in 2017, the Cabinet had approved the merger of five subsidiary banks of SBI into State Bank of India. In March 2020, the government merged Oriental Bank of Commerce and Union Bank of India into Punjab National Bank. Apart from this, Syndicate Bank was merged with Canara Bank, Corporation Bank was merged with Union Bank of India and Allahabad Bank was merged with Indian Bank.
