10 PSU Banks all set to merges today

Last year, the government announced a merger of 10 public sector banks into four banks. The announced merger was supposed to come into effect from early 2020-21 fiscal.

In 2017, a total of 27 public sector banks were there. Now, the number will come down to 12 — six merged banks and six independent banks

Oriental Bank of Commerce and United Bank of India will be merged into Punjab National Bank.

Syndicate bank will be merged with Canara Bank.

Indian bank will be merged with Allahabad Bank.

Union Bank of India will be merged with Andhra Bank and Corporation Bank

Indian Overseas Bank, Uco Bank, Bank of Maharashtra, Punjab and Sind Bank, Bank of India, Central Bank of India will remain the independent banks.

The customers of the 10 banks will be treated as the customers of the banks they got merged with. The branches of the 10 banks will now work as the branches of the merged banks.

Punjab National Bank will become the second-largest lender after the merger. The first is the State Bank of India.

Bank officers' unions, however, earlier this week wrote to the prime minister seeking to defer the merger schemes of lenders due to the lockdown triggered by coronavirus outbreak. Finance Minister Nirmala Sitharaman had clarified that the mega bank consolidation plan was very much on track.