Canara Bank Merger List for the Second PSB Merger

In the recent announcement finance minister Nirmala Sitharaman has announced the merger of 10 Public Sector, and one of them is Canara Bank. The government has taken the step of the bank merger to support the weaker banks in India, because after the merger their non-processing asset (NPA) ratio reduces. And this can benefit the country economically and stable the status in the market. To know the Canara Bank merger list read the given article.

Consolidation of Canara Bank with Syndicate Bank in 2nd PSB merger

According to trade analysts, the merger of Syndicate Bank with Canara Bank is going to be the fourth largest merger and can provide the benefit of high business to Canara Bank. The board of directors of Canara Bank decided to implement the merger for better outcomes. Below are the mentioned benefits of the Canara Bank merger.

• Increase in the lending capacity: After the merger, the funds of Syndicate Bank are combined with Canara Bank that will automatically increases the bank lending capacity. Which could help in lending a higher loan amount to the customers and would make the Canara Bank a prominent lender in the market. Canara Bank merger list shows that it is combining the syndicate bank only because their merger will provide increases in the business.  
• More ATM and bank branches: The customers will also get the facility of more ATMs and bank branches in their state as the Bank ATMs get combined after the amalgamation. According to the speculations after the merger of Canara with Syndicate there would be 9,609 bank branches. 
• Improvement in the services: Online banking facility is also improved after the merger and users can use it to apply for a loan, credit card or any other banking product easily without any inconvenience. Because, Syndicate Bank after the merger combined with Canara Bank so their product services might get improved for better consumer services. 

Benefits of the PSB merger in the Past Amagalation of the banks

In the first PSB merger, the government merged the top banks like SBI and Bank Of Baroda (BOB) with small PSBs like Vijaya Bank, Dena Bank and Bhartiya Mahila Bank. After the merger of SBI with its associate 5 banks and Bhartiya Mahila Bank, SBI becomes the top PSB in India with a total business of INR 18 lakh crore. With the success of the first PSB merger, the government has decided to come up with 2 PSB merger to make PSB a global lender. According to the Canara Bank merger list, the bank is consolidating with Syndicate Bank and would provide a business of INR 15.2 lakh crore.

So, you can estimate that with 2 PSB merger the government tries to stabilize the banking sector by combining them and reducing the risk of high-cost management. Because after the merger, the RBI can easily manage funds for the banks as the PSB decreases from 10 to 4. Also, the customer get hassle-free banking services from their respective banks after the merger.