New Delhi: The board of Punjab National Bank (PNB) today gave the in-principle approval for the merger with Oriental Bank of Commerce (OBC) and United Bank of India (UBI) with itself which was announced by Union Finance Minister Nirmala Sitharaman.
On August 30, in a slew of measures to revive the economy, Sitharaman had announced mergers involving 10 state-run banks.
The merger of OBC and UBI with PNB is supposed the biggest one of all the mergers announced.
The three of them will now form India’s second-largest bank after the State Bank of India (SBI), with Rs 17.95 lakh crore business and 11,437 branches across the country.
Here’s the complete list of the 12 remaining public sector banks in India:
- State Bank of India
- PNB+OBC+United Bank of India
- Bank of Baroda
- Canara Bank+Syndicate Bank
- Union Bank of India+Andhra Bank+Corporation Bank
- Bank of India
- Indian Bank+Allahabad Bank
- Central Bank of India
- Indian Overseas Bank
- UCO Bank
- Bank of Maharashtra
- Punjab & Sindh Bank
The board has also approved the Rs 18,000 crore capital infusion as announced by the government last week.
However, the bank unions have said that they will protest against these mergers on Saturday citing that this move will not strengthen the banking sector.
The protest will take place under the Joint Platform of Banking Unions which includes nine federations and representation from all public sector banks in India.
The real agenda of the government in merging banks is to help big corporates as consolidation of the banks will not result in the recovery of huge bad loans, said a top official of the All India Bank Employees’ Association.