Bank Merger: These public sector banks will be merged with SBI, PNB and Bank of Baroda, the government is planning

Bank Merger News: The number of public sector banks in the country may decrease. Many smaller public sector banks may become history. The government has developed a major plan for smaller public sector banks. In fact, the government is preparing to merge larger banks. India’s banking sector is about to undergo another major transformation.

Government Bank Merger: The number of government banks in the country may decrease. The names of many small government banks may become history. The government has prepared a big plan for small government banks. Actually, the government is preparing to merge big banks. A big change is going to happen again in the banking sector of India. Once again, banks are going to be merged. This time the government is moving forward towards the merger of small government banks. Actually, Moneycontrol has said in its report that in FY27, the government can merge many small banks of the country. These banks will be merged with banks like SBI, PNB and Bank of Baroda.

Preparations for Bank Mergers

The government has made significant preparations to further streamline public sector banks. The government is preparing to merge these banks as part of banking reform. Sources indicate that the banks to be merged include Indian Overseas Bank (IOB), Central Bank of India (CBI), Bank of India (BOI), and Bank of Maharashtra (BOM).

Which banks will be merged?

The government is preparing to merge small public sector banks with large public sector banks. These banks could be merged with larger banks like Punjab National Bank (PNB), Bank of Baroda (BoB), and State Bank of India (SBI). The government is preparing to strengthen the banking sector through this merger. The government is attempting to strengthen the banking sector by aligning the NPAs, expenses, and low profits of smaller banks with larger banks. Furthermore, the merger will support credit expansion. The government aims to create a stronger and better banking infrastructure by merging smaller banks with larger banks. This proposal will first be discussed with senior officials at the Cabinet level and then sent to the Prime Minister’s Office (PMO).

Bank mergers have happened before

This is not the first time. The government has previously merged large banks. Between 2017 and 2020, the government merged 10 public sector banks. The number of public sector banks in the country dropped from 27 to 12. The government had previously merged 10 banks. The government merged the state-owned banks Oriental Bank of Commerce (OBC) and United Bank of India (UBI) with PNB. Similarly, Syndicate Bank merged with Canara Bank. Prior to that, five banks had merged with SBI: SBBJ, Bank of Patiala, Bank of Hyderabad, and Bharatiya Mahila Bank.

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