New Delhi, Feb 18 (SocialNews.XYZ) The Union Cabinet is likely to consider the merger of 10 PSU banks into four big lenders this week to allow the process to take effect from the scheduled date of April 1, 2020.
Once notified, the boards of these banks will approve the swap ratio for the merger. Each bank is required to follow regulatory norms to protect minority stakeholders' interests.
The mega merger was announced on August 30 last year.
The government is slated to notify the merger of 10 public sector banks to create four big lenders later this week, as the banks have completed the necessary groundwork, said officials.
On the issue of the mergers being not notified so far since the April 1 deadline is not so far away, Finance Minister Nirmala Sitharaman had said: "I don't see any reason to go back or any reason which is particularly causing any delay for any notification...you will hear on it as it when it comes."
Under the plan, the Punjab National Bank will take over the Oriental Bank of Commerce and the United Bank, the Canara Bank will take over the Syndicate Bank, the Union Bank of India will take over the Andhra Bank, and the Corporation Bank and the Indian Bank will be merged with the Allahabad Bank.
In April 2019, the Bank of Baroda, in a three-way merger exercise, amalgamated the Vijaya Bank and the Dena Bank with itself. The SBI had merged five of its associate banks - the State Bank of Patiala, the State Bank of Bikaner and Jaipur, the State Bank of Mysore, the State Bank of Travancore and the State Bank of Hyderabad as well as the Bharatiya Mahila Bank with itself effective April 2017.
Source: IANS
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