Merger of 10 banks into 4 from April1
Published On: Thursday, March 5, 2020 | By: Team KnowMyStock
The government on 4th March approved the amalgamation of 10 state-owned banks into four, putting to rest any doubts about a possible delay in the process from 1st April 2020, the balance sheets as well as stocks of these banks will be integrated, according to the scheme of amalgamation approved by the Union Cabinet. Punjab National Bank (PNB), Oriental Bank of Commerce, and United Bank of India will combine to form the nation’s second-largest lender. Canara Bank will take over Syndicate Bank; Union Bank of India is planned to be amalgamated with Andhra Bank and Corporation Bank, and Indian Bank will subsume Allahabad Bank. “Businesses and industry will benefit through an increased lending capacity, with the regulatory ceiling for lending to individual borrowers increasing by over Rs 1,500 crore to Rs 3,000 crore,” according to finance ministry and with this, the banks would be able to support specialised loan products, such as supply chain financing and cash management services.
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