Bank Mergers
Fin min says no proposal under consideration currently to merge PSU banks
This story was originally published at 15:44 IST on 23 March 2026
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NEW DELHI – There is no proposal currently under consideration for the merger or consolidation of public sector banks, Minister of State for Finance Pankaj Chaudhary said Monday. In the past, the merger of public sector banks has helped create stronger banks with economies of scale and scope while enabling the realisation of wide-ranging synergies, Chaudhary said in a written reply in Lok Sabha.
The Narendra Modi government has carried out large-scale mergers of PSU banks in recent years. Soon after coming to power for the second time, the government announced a mega merger of 10 public sector banks. Effective Apr. 1, 2020, Oriental Bank of Commerce and United Bank of India were merged into Punjab National Bank; Andhra Bank and Corporation Bank were merged into Union Bank of India; Syndicate Bank was merged with Canara Bank; and Allahabad Bank was merged into Indian Bank. This left only 12 public sector banks, down from 20 earlier.
Prior to this, five associate banks of SBI – State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore, State Bank of Hyderabad, and State Bank of Patiala were merged with State Bank of India in 2017, along with Bharatiya Mahila Bank. Before that, the State Bank of Indore was merged with the SBI in 2010 and the State Bank of Saurashtra had been merged with the SBI in 2008.
The merger of public sector banks has streamlined operations and reduced costs, thereby increasing the banks' consolidated business, Chaudhary said. End
Reported by Sagar Sen
Edited by Saji George Titus
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