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PSB Mergers – Government hinted the merger of PNB, Union Bank and Bank of India

PSU Bank Mergers

ET reported that the post election, Finance Minister is likely to hold discussions soon about next round of consolidation, which is expected in second or third quarter of this fiscal year. Finance Ministry officials are saying that  it is not necessary for merger to be a tripartite merger and will now look at different and various combinations.

Earlier in this month, there was rumor of Mergers of SyndicateBank, Punjab National Bank and Indian Overseas Bank

The government is soon likely to invite select lenders for discussion on a second round of merger in public sector banks.

Punjab National Bank managing director and chief executive Sunil Mehta had said that his bank has now made a turnaround and can consider offers for acquiring other lenders.It all depends on the offers,he said.

In the first round of the PSB merger, Bank of Baroda, Vijaya Bank and Dena Bank were formally amalgamated on April 1, 2019. The official said that It need not be a tripartite merger again. We will be looking at various combinations. It has to be organic, besides we will like some of these large banks to further consolidate their balance sheets in the first two quarters.

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