Merger of 10 PSU Banks to come into Effect from Today

CIOReviewIndia Team | Wednesday, 01 April 2020, 11:07 IST

Merger of 10 PSU Banks to come into Effect from Today

The merger of 10 state-run banks into four will come into effect from today. Amid speculations that the merger of banks that was announced last would be postponed due to coronavirus outbreak, the government went ahead with the consolidation of exercise. Reserve Bank of India has recently said thatthe proposed merger of 10 PSUbanks will be effective from April 1, 2020.With this consolidation which is considered to be the biggest till date, the number of public sector banks in the country will be reduced to 12 from 27.

As per theplanof consolidation approved by the government of India, Andhra Bank along with Corporation Bank will be merged into Union Bank of India; Syndicate Bank will be merged into Canara Bank; Allahabad Bank will be merged into Indian BankOriental Bank of Commerce; and United Bank of India will be mergedinto Punjab National Bank. Following the merger, Punjab National Bank will emerge as the second largest in the country only after State Bank of India.

"We don't foresee any problem it is going as per the plan. We have reviewed in the light of this situation also. Certain modification in implementation. We have done so that there is not any disruption for employees and customers. We are ensuring zero disruption," said Union Bank of India Managing Director Rajkiran Rai G.

"We have focused all our resources on the important things that matter for day one -- treasury integration has happened and IT integration to the extent of product harmonization and rolling out of the same products has happened," said Padmaja Chunduru, Managing Director, Indian Bank, speaking on the preparedness for the consolidation.

"We are delighted that following the amalgamation as a single legal entity, we will become a powerful banking institution that is globally competitive and efficient working towards providing differentiated customer experience excellence across all our products and services,”saidL V Prabhakar, Managing Director, Canara Bank, commenting on the consolidation process.

This merger will create seven public sector bankswith over Rs 8 lakh crore business. The merger would help these banks compete with private banks in the country and other banks across the globe.

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