The mega-merger of 10 PSU banks goes into effect: things you need to know
NEW DELHI: The mega-merger of ten public sector business banks (PSUs) into four major entities, announced by Finance Minister Nirmala Sitharaman in August 2019, came into effect on Wednesday. Clients, including depositors of the merged banks, will now be treated as clients of the banks in which they have merged.
Here are some key points about mergers:
* Merger of United Bank of India and Oriental Bank of Commerce in Punjab National Bank
All branches of United Bank of India and Oriental Bank of Commerce have started operating as branches of Punjab National Bank (PNB). The merger has made PNB the second largest nationalized bank in the country, both in terms of business and branch network.
In a statement PNB said, the merger synergy will create a globally competitive next-generation bank: PNB 2.0. He added that all clients, including depositors, will be treated as PNB clients.
The amalgamated bank will have a broader geographic reach through more than 11,000 branches, more than 13,000 ATMs, one-lakh employees, and a business combination of more than Rs 18 lakh crore.
PNB has unveiled a new logo following the merger of United Bank of India and Oriental Bank of Commerce. The new logo will bear distinctive badges from all three public sector lenders.
* Canara Bank and Syndicate
Syndicate Bank has 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 Syndicate Bank depositors, will be treated as Canara Bank customers beginning April 1.
Krishnan S, CEO of Syndicate Bank, has been named to the same portfolio at Canara Bank after the merger.
* Amalgam of Union Bank with Andhra Bank and Corporation Bank
Union Bank became the fifth largest public sector lender in the country after merging with Andhra Bank and Corporation Bank. The merger is also expected to generate cost and revenue synergies to the tune of Rs 2.5 billion in the next three years.
To minimize disruption, account numbers, IFSC codes, debit/credit cards, and internet/mobile banking portals and customer login credentials will remain the same.
We now offer our clients much broader access to branches, ATMs, digital services and credit facilities and we are now in a much stronger position as a bank, said Union Bank Of India Managing Director and CEO Rajkiran Rai G.
* Indian Bank and Allahabad Bank
Allahabad Bank has merged with 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 a network of 9,000 bank correspondents.
K Ramachandran, CEO of Allahabad Bank, has been appointed CEO of the subsequent merger of Indian Bank.