Bank Merge List of The Latest PSB Mergers in India

Earlier, this year the finance minister Nirmala Sitharaman has announced the merger of 10 public sector banks (PSBs). With the success of the previous PSB merger, the government decided to come up with the second phase of the bank merger in which 10 PSB would merge. The benefit of this merger is that it can help in supporting the small banks and increases their lending capacity in the market. To know the bank merge list of the 2nd PSB merger read the given article.

Bank merge list for the 2nd PSB Merger

1. Second largest PSB merger: The merger of Punjab National Bank (PNB) with Oriental Bank Of Commerce and United Bank Of India (UBI) would make PNB the largest PSB in India after SBI. Because PNB is a large sector bank owned by the government and after merging with Oriental Bank and United Bank its fund prices increases so do its lending capacity. 
2. Fourth largest PSB merger: Canara Bank is merging with Syndicate Bank according to the bank merge list. The current non-processing assets (NPA) of Canara Bank is 5.37% and 6.16% for the Syndicate Bank. After the merger NPA is reduced and would be 5.62% according to the analysts. 
3. Fifth largest PSB merger: In the second phase of the PSB merger the Union Bank Of India is merging with Andhra and Corporation Bank. This merger would make Union Bank Of India the 4th largest PSB with a total NPA of 6.30%. 
4. Seventh Largest PSB merger: Indian Bank is merging with Allahabad Bank in the recent bank merger that could provide the benefit of a lower NPA ratio of 3.75%.

What is the impact of the Bank merger?

The merger aims to make the large banks a global lender by combining it with the small regional and commercial banks owned by the government. Because it helps in increasing the business of the banks such as according to the bank merge list the PNB business can be 18 lakh crore after the merger. The government provides capital for the merger of the banks so that it can’t affect the customer’s banking experience. As in the previous bank merger, Bank Of Baroda is merged with Vijaya and Dena Bank that helps in increasing the lending capacity and also the NPA decreases.

Also after the merger, the user will get the benefit of a wide range of banking products and can apply for a higher loan amount as the bank’s lending capacity increases. The merger also provides convenience to the customers with increased ATM and Bank branches. And, the bank technology upgraded after the merger with the help of which small banks can also provide online banking services to its customers. The recapitalization needs of the bank also reduced after the merger as there would be lesser PSB. In the previous merger, the PSB reduced from 21 to 12 and after the second merger, there would be only 4 PSBs. So, the merger is beneficial in stabilizing the country’s economy and with the latest bank merge list you can determine its benefits.