List of Banking Mergers in India - Check Latest Public Sector Ban Mergers (2024)

Merger

The mechanism by which two or more corporations plan to combine to become a single entity, frequently with a new name, rather than remaining independently owned, and run, is known as a merger.

Importance of Merger

According to the finance minister, merger assists to manage capital more significantly. The amalgamation of Public sector banks is based on the bad loans intensity and regional factors. The merger facilities enable the incorporation of global-sized banks. Additionally, it also restructures and redefines the country’s banking space.

Latest List of Merger of Banks in India

Here are some of the latest mergers of banks in India, and the ones that are the most evident. The government had announced there would be Public Sector Bank Merger, and after the merger, there are now 12 public sector banks. Ten PSU banks were amalgamated into four banks.

Bank Merger List
Punjab National Bank + Oriental Bank of Commerce + United Bank of India	The Punjab National Bank combines the Oriental Bank of Commerce (OBC) and the United Bank of India (UBI) (PNB). As a result of this merger, the PNB will now be India’s second-largest public sector bank in terms of branch network, after the State Bank of India. There will be 11,437 outlets, and the PNB’s overall business will be Rs. 17.95 lakh crore.
Syndicate Bank + Canara Bank	Canara Bank and Syndicate Bank are combined. Canara Bank will become India’s fourth-largest public sector bank after this merger. With a branch strength of 10,342, Canara’s overall company will be worth 15.20 lac crore. Thanks to network overlap, this integration would lower operating costs. Since these two banks have identical work cultures, a seamless integration should be possible.
Andhra Bank + Corporation Bank + Union Bank of India	Union Bank of India merges Andhra Bank and Corporation Bank. Union Bank of India will become the fifth-largest public sector bank merger in India. This acquisition has the potential to raise the business of the post-merger bank by 2-4.5 times. Union Bank of India’s gross business will be Rs. 14.59 lac crore after the merger, with a total of 9,609 branches.
Allahabad Bank + Indian Bank	The Indian bank will be combined with Allahabad Bank in the fourth merger. Allahabad Bank will become India’s seventh-largest public sector bank after the merger. The overall company of Allahabad bank after the merger will be Rs. 8.08 lac crore, with 6,104 branches. As a result of the integration of the two banks, the size of their company will double, increasing their global competitiveness.
Bank of Baroda + Dena Bank + Vijaya Bank	Vijaya Bank and Dena Bank were merged with Bank of Baroda with effect from April 1, 2019. The customers of BoB’s will now have access to 8,248 domestic branches and around 10,318 ATMs across India.
State Bank of India (SBI) + State Bank of Bikaner and Jaipur + State Bank of Mysore + State Bank of Patiala + Bharatiya Mahila Bank + State Bank of Travancore State Bank of Hyderabad	State Bank of India (SBI) was merged with Bharatiya Mahila Bank and its associate banks in the year 2017. Its Combined Domestic Branches now total up to 24,000 approx.
HDFC Bank + HDFC	The merger of HDFC into HDFC Bank was announced on 4th April 2022. In terms of market capitalisation, this merger will lead to making it the third-largest entity in India.

Terms after PSU Bank Merger

With impact from April 1, 2020, clients of combining banks, including depositors, will be regarded as customers of the banks into which they have been consolidated.
There will be 12 PSUs after the merger: six consolidated banks and six separate public sector banks.
The Oriental Bank of Commerce and the United Bank of India started to serve as Punjab National Bank branches (1st April 2020).
On April 1, 2020, Syndicate Bank became a branch of Canara Bank.
All other branches of the Allahabad Bank will be considered as Indian Bank branches.
With effect from 1st April 2020, all Andhra Bank and Corporation Bank branches started to operate as Union Bank of India branches.

Benefits to Bank Mergers:

Benefits to Banks through Mergers:

A bank merger allows the company to grow rapidly and attract a vast number of new clients all at once. An acquisition not only provides the bank with more money to deal with in terms of credit, and it will be able to accomplish the development objectives more quickly this way.

Acquisitions also enable to see and scale the bank more effectively, not only in terms of efficiency but also in terms of banking operations. It will be a bank that has regulatory, risk management, accounting, operations, and IT technology in place.

Bank mergers and acquisitions give the company the ability to bridge product and technological differences. It’s often cheaper to buy a smaller bank with a unique sales model or financial offering than it is to start from scratch.

The acquisition will help to bolster the sales force or reinforce the top management team, and this human aspect should not be overlooked or minimized.

The credit capability of public sector banks will grow as a result of these mergers, and their balance sheets will be strengthened.

These large banks will be able to operate on a global scale and improve their operating performance by lowering their credit costs.

To turn India into a 5 trillion economy, it will need massive investment. If banks have enough funds to finance large programs, the country’s economic growth will accelerate.
The merger would aid in improved banking capital management.