The board of the GNP will consider the infusion of capital of Rs 18,000 million this week
NEW DELHI: The National Bank of Punjab (GNP) said on Monday that the board will consider a capital infusion of up to Rs 18,000 million at its meeting later this week. It comes in the context of the government announcement on August 30 on the merger of 10 public sector banks into four entities, as part of which PNB will merge Oriental Bank of Commerce (OBC) and United Bank of India (UBI) with itself.
The board will consider infusion of capital up to Rs 18,000 crore at its meeting scheduled for September 5, 2019, PNB said in a regulatory document.
On August 31, PNB said it received a communication from the Ministry of Finance that the government, after consulting with the Reserve Bank of India, had decided that PNB, OBC and UBI could consider the merger of OBC and UBI into GNP
Consequently, the bank will shortly convene a board meeting to consider the merger, said GNP.
The mega merger plan of public sector banks (PSB) is considered the largest consolidated exercise in the banking space, with the aim of converting them into lenders of global size and scale.
Among others that are part of this exercise include the merger of Syndicate Bank in Canara Bank, Allahabad Bank in Indian Bank and the consolidation of Andhra Bank and Corporation Bank with the Union Bank of India.
With this, the number of government banks in India will be reduced to 12 from 19 before.
In April 2017, the State Bank of India had merged its six partner banks and the Bharatiya Mahila Bank with itself. While the last prosecutor witnessed the merger of Vijaya Bank and Dena Bank in Bank of Baroda.