Bank Merger List : Powerful Impact On Indian Banking (Updated List in 2024)

Introduction of Bank Merger List:

In this article, we will discuss various aspects related to Bank Merger List. The economy of a country also depends on the banks of that country to a great extent, banks make an important contribution to maintaining the strength and stability of the country’s economy. Governments often merge banks to remove the prevailing recession or lethargy in the economy, as the country of India also decided to do, and its process was carried out.

In a move to restructure and redefine the country’s banking sector, in 2021, the Government of India merged 10 Public Sector (PSU) banks into 4 banks.

A merger is an agreement between entities where they pool their assets and liabilities to become a single entity. Merger of Public Sector Banks (PSBs) is where PSBs are merged with ‘anchor’ banks.

Bank Merger List :  Updated in 2023

S.No. Anchor Bank Banks to be Merged with Anchor Bank Combined Domestic Branches
1 Punjab National Bank 1.Oriental Bank of Commerce

2.United Bank of India

11,437
2 Canara Bank Syndicate Bank 10,391
3 Indian Bank Allahabad Bank more than 6000
4 Bank Of Baroda 1.Dena Bank

2.Vijaya Bank

9,500
5 Union Bank of India 1.Andhra Bank

2.Corporation Bank

8700+
6 State Bank of India (SBI) 1.State Bank of Bikaner and Jaipur (SBBJ)

2.State Bank of Hyderabad (SBH)

3.State Bank of Mysore (SBM)

4.State Bank of Patiala (SBP)

5.State Bank of Travancore (SBT)

6.Bharatiya Mahila Bank

28,000+

 

Bank Merger List

List of Independent Banks which are not merged

  1. Indian Overseas Bank,
  2. UCO Bank
  3. Bank of Maharashtra
  4. Punjab and Sind Bank
  5. Bank of India
  6. Central Bank of India

SBI and its associated banks?

State Bank of Patiala, State Bank of Travancore, State Bank of Mysore, State Bank of Bikaner and Jaipur ,State Bank of Hyderabad, and Bharatiya Mahila Bank

sbi associates

Reasons for the Merger of Banks

  1. The main reason for the merger of banks is to deal with the issue of rising loans. This loan refers to those loans where the corporate borrowers are not paying their dues to the banks.
  2. In order to improve the condition of the continuously loss-making banking institutions in India, the step of bank mergers has been taken.
  3. The merger will increase the lending capacity of banks as well as improve their financial condition.
  4. High NPA Due to this, many banks were in a difficult situation.
  5. With a view to improving operational efficiency, governance, and accountability and facilitating effective monitoring.
  6. Building globally stronger banks, doing away with unnecessary overlaps in operations and infrastructure, and introducing economies of scale to bring costs down have always been at the heart of any consolidation drive.
  7. The move was extended with the aim of building a next generation bank with a strong national presence and global outreach, as well as increasing credit to various important sectors of the economy.

Merits and Demerits of Banks Merger

Merits of a bank merger:
  • The banking structure will get stronger.
  • Financial inclusion will rise in every area of the country.
  • Operational costs will be reduced.
  • Efficiency will increase due to the upgrade of technical expertise.
  • The scope of banking activities will expand as the network expands and allows services to be provided throughout the entire nation.
  • Customers get wider choices in terms of banking products.
  • Administrative expenses will be reduced.
  • Service delivery to customers will be improved.
  • Banks could offer larger loan amounts as they become larger entities.
  • Customers can choose from a variety of banking products, such as mutual funds, insurance products, loans, and deposits.
  • Advance Technology could be in use.
Demerits of Bank Merger

 

  • The goal of decentralization will be affected.
  • Bad Loans will become an issue for larger banks too.
  • Banking staff were also impacted due to changes in terms of working on new software and their new role. They have to follow the new guidelines of the anchor bank.
Merger Effect on Customers:
  • There are possibilities that the Branch of the bank could be changed as per the anchor bank.
  • The IFS Code and other bank stationery such as a checkbook, passbook, Debit Card, and FD/RD have to be updated with the anchor bank.
  • Shareholders of banks will be affected.
  • SMS Facility could suffer during the merger.
  • Loan EMIs would be shifted to the anchor bank, and there is a possibility that the old schemes would be replaced by new ones.
Merger Effect on Employees:

Bank employees could have faced so many challenges, such as work pressure, software updates, a heavy rush of customers, and a transfer to a new location (in the event of the branch’s shutdown).

Conclusion:Bank Merger List

Cleaning up the bad loans, boosting the economy, and achieving the target of a $5 trillion economy by 2024 are the key reasons why bank mergers could happen. Trying to build next-generation banks, big banks with the capacity to enhance credit Although it is a positive decision for India’s growth.

Hopefully you find all the details of bank merger list in India. Here is link of RBI Official Website .Click to go official website


FAQs on the List of Merged Public Sector Banks in India

My bank account number and customer ID gets changed?

However, a new account number and customer ID are likely to be issued as per the anchor bank.

Public-sector banks after merger?

There are now 12 public sector banks after the merger. In 2017, there were 27 banks.

What is branch rationalisation?

If the home branch of your bank is in a locality where the branch office of the acquiring bank also has a nearby branch, then the acquired bank’s branch will be shut down.

Home branch of my bank, which just got merged with another bank?

The home branch could be changed as per the anchor bank. The rationalizations will matter.

Goal of Bank mergers in India?

To strengthen the economy, raise profitability, cut down on NPAs, boost efficiency, and increase the branch network’s global reach.

UCO Bank Merged with Which Bank?

Not Merged.

Central Bank of India Merger with which bank?

It is Not Merged with any Bank. They will remain independent entities.

Indian Bank Merged with Which Bank?

The Indian Bank merged with Allahabad Bank. Now Allahabad Bank will be called Indian Bank.

Corporation Bank Merged with Which Bank?

Union Bank of India and Andhra Bank The New Bank will be called Union Bank of India after the merger.

Bank of Maharashtra Merged with Which Bank?

The Bank of Maharashtra has not Merged with any Bank.

Canara Bank Merged with Which Bank?

Canara Bank merged with Syndicate Bank. Canara will be the new anchor bank.

Indian Overseas Bank Merged with Which Bank?

It is not Merged with any Bank.

Indian Bank Merged with Which Bank?

Allahabad Bank merged with the Indian Bank. The Indian Bank will be the new anchor bank.

Which bank acquired OBC and UBI?

The New Anchor bank will be the Punjab National Bank.

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