Allahabad Bank, Andhra Bank meetings schedule a meeting for merger proposals
New Delhi, September 11 () Allahabad Bank said Wednesday that its board of directors will meet next week to consider its merger with Indian Bank.
In addition, Andhra Bank said its board will meet on September 13 to consider and approve the merger of it along with Corporation Bank in Union Bank of India.
A meeting of the bank's board of directors is scheduled for Monday, September 16, 2019 to consider the merger of Allahabad Bank with Indian Bank, the Kolkata-based bank said in a regulatory document.
Finance Minister Nirmala Sitharaman had announced last week to merge 10 public sector banks (PSBs) into four lenders aimed at creating stronger and larger banks.
In the largest consolidation exercise in the banking space, on August 30 the government had announced four major mergers of PSB, reducing its total number to 12 of 19, a measure aimed at converting state lenders into global-size banks.
According to the consolidation exercise, United Bank of India and Oriental Bank of Commerce will merge with Punjab National Bank, making the proposed entity the second largest public sector bank (PSB).
Syndicate Bank will merge with Canara Bank.
On September 5, the board of the Punjab National Bank gave its approval in principle for the merger of the Oriental Bank of Commerce and the United Bank of India itself.
PNB also said that, with this approval, the merger process begins, subject to all applicable approvals.
India has seen the merger of six associated banks with SBI and the Bharatiya Mahila Bank with the country's largest lender in the financial year beginning in April 2017.
The following year, the Bank of Baroda had merged Vijaya Bank and Dena Bank with itself.
Earlier this week, on Monday, Union Bank of India had said its board of directors had approved the merger of Andhra Bank and Corporation Bank. Allahabad Bank shares closed 1.21 percent higher at Rs 33.50 in the BSE, Andhra Bank finished 3.17 percent at Rs 19.55 per piece. KPM HRS