23 December 2019
Three public sector banks – Union Bank of India, Andhra Bank and Corporation Bank – have unanimously agreed on creating organisational structure by 1 April to give effect to their merger to create a larger entity.
Union Bank of India, Andhra Bank and Corporation Bank have zeroed in on the ‘best of three approach’ that would manage cultural integration of the three in the run up to their amalgamation, as the merged entity targets handling double the volume of the combined current
As per the consolidation plan for state-run banks unveiled by the finance minister announced in August, the merger of Union Bank of India, Andhra Bank and Corporation Bank would create the fifth largest bank in India.
Under the PSU banks recapitalisation plan, Union Bank of India will get Rs11,700 crore in fresh funding, helping the merged entity to reduce losses and improve credit flow.
Post-merger, PNB will be the second largest PSB, Oriental Bank of Commerce third, Canara fourth, UBI fifth Andhra Bank sixth and Allahabad seventh biggest lenders.
After the merger, the number of India’s public sector banks drops to 12 from 27 earlier.
Union Bank of India will be anchor lender in the third merger to create the fifth largest public sector bank with a total business size of Rs14.59 lakh crore. The merged entity will be double the current size of Union Bank.
The merger between Allahabad Bank and…