Mega merger of 10 PSU banks takes effect: Things to know

Mega merger of 10 PSU banks takes effect: Things to know thumbnail
NEW DELHI: The mega merger of ten public sector undertaking (PSU) banks into four large entities, announced by finance minister Nirmala Sitharaman in August 2019, came into effect from Wednesday. Customers, including depositors of the merging banks, will now be treated as customers of the banks in which they have merged. Here are a few…

NEW DELHI: The mega merger of ten public sector undertaking (PSU) banks into four large entities, announced by finance minister Nirmala Sitharaman in August 2019, came into effect from Wednesday. Customers, including depositors of the merging banks, will now be treated as customers of the banks in which they have merged. Here are a few key points about the mergers: * Merger of United Bank of India and Oriental Bank of Commerce into Punjab National BankAll branches of United Bank of India and Oriental Bank of Commerce has started functioning as branches of Punjab National Bank (PNB). The amalgamation has made PNB the second largest nationalised bank of the country — both in terms of business and branch network. In a release PNB said, the synergy from the amalgamation will create a globally competitive, next generation bank — PNB 2.0. It added that all customers, including depositors, will be treated as PNB customers. The amalgamated bank will have a wider geographical reach through 11,000 plus branches, more than 13,000 ATMs, one lakh employees and a business mix of over Rs 18 lakh crore. PNB has unveiled a new logo following the merger of United Bank of India and Oriental Bank of Commerce with it. The new logo will bear distinct signages of all the three public sector lenders. * Canara Bank and Syndicate Bank mergerSyndicate Bank has been merged with Canara Bank, making it the fourth largest PSB with a business of Rs 15.20 lakh crore. The bank will have 10,391 branches, 12,829 ATMs and a combined strength of 91,685 employees. Customers, including depositors of Syndicate Bank, will be treated as customers of Canara Bank with effect from the April 1. Krishnan S, the executive director at Syndicate Bank has been appointed in the same portfolio at Canara Bank post merger. * Amalgamation of Union Bank with Andhra Bank and Corporation BankUnion Bank became the fifth largest public sector lender of the country after amalgamating with Andhra Bank and Corporation Bank. The amalgamation is also expected to generate cost and revenue synergies to the tune of Rs 2,500 crore over the next three years. In order to minimise disruption, the account numbers, IFSC codes, debit/credit cards and internet/mobile banking portals and login credentials of the customers will remain the same. “We now offer our customers a much wider access to branches, ATM, digital services and credit facilities and are now in a much stronger position as a bank,” Union Bank Of India managing director and CEO Rajkiran Rai G said. * Indian Bank and Allahabad BankAllahabad Bank has been amalgamated into Indian Bank, making it the seventh largest PSB in the country, with a business of Rs 8.08 lakh crore. The combined entity would have 6,060 branches, a network of 2,870 ATMs and banking correspondent network of 9,000. K Ramachandran who was the executive director of Allahabad Bank has been appointed as executive director of the Indian Bank post merger. DownloadThe Times of India News App for Latest Business NewsSubscribeStart Your Daily Mornings with Times of India Newspaper! Order Now
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