Ten Public Sector Banks to be merged into four. PSBs to be reduced to 12 against present 27 

The Government has decided to merge 10 Public Sector banks to reap benefits of scale and synergy. After merger there will be only 12 PSB as against present 27 

1. Punjab National Bank, Oriental Bank of Commerce, and United Bank to be merged together.

The Punjab National Bank shall be the anchor bank. Scale and synergy benefits expected through merger are:

(a) High CASA and lending capacity combined in consolidated bank

(b) Large cost reduction potential due to network overlaps

(c) Cost saving and income opportunities for JVs and subsidiaries

(d) Same CBS platform (Finacle) in all three banks to enable quick realisation of gains

It will become 2nd largest PSB with business of ₹ 17.95 lakh crore (~1.5 times PNB) and 2nd largest branch network in India, with 11,437 branches.

2. Canara Bank and Syndicate Bank to be merged together.

The Canara Bank shall be the anchor bank. Scale and synergy benefits expected through merger are:

(a) Large cost reduction potential due to network overlaps

(b) Similar culture to enable smooth consolidation

(c) Cost saving and income opportunities for JVs and subsidiaries

(d) Same CBS platform (iFlex) in both banks to enable quick realisation of gains

Post merger, it will emerge as 4th largest PSB with business of ₹ 15.20 lakh crore (~1.5 times Canara Bank) and 3rd largest branch network in India, with 10,342 branches

3. Union Bank, Andhra Bank, and Corporation Bank to be merged together.

The Union Bank shall be the anchor bank. Scale and synergy benefits are expected through:

(a) Business to become twice to 4½ times existing bank business

(b) Large cost reduction potential due to network overlaps

(c) Cost saving and income opportunities for JVs and subsidiaries

(d) Same CBS platform (Finacle) in all three banks to enable quick realisation of gains

4. Indian Bank and Allahabad Bank to be merged together.

The Indian Bank shall be the anchor bank.  Scale and synergy benefits are expected through:

(a) Doubling of business size

(b) Major scaling up of reach due to complementary networks

(c) High CASA and lending capacity in consolidated bank

(d) Same CBS platform (BaNCS) in both banks to enable quick realisation of gains

Thus post merger/amalgamation, there will be only 12 Public Sector Banks as under:

(i) Punjab National Bank (PNB)

(ii) Canara Bank

(iii) Union Bank of India (UBI)  

(iv) Indian Bank

(v) State Bank of India (Amalgamated earlier)

(vi) Bank of Baroda (BOB) (Amalgamated earlier)

(vii) Bank of India (BOI)

(viii) Central Bank of India (CBI)

(ix) Indian Overseas Bank (IOB)

(x) UCO Bank

(xi) Bank of Maharastra

(xii) Punjab and Sind Bank

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