List of Bank mergers in India is an important banking awareness topic. Consolidation in the banking sector is very important in terms of mergers and acquisitions for the growing Indian Banking Industry. A merger is defined as, “a combination of two or more companies in which the assets and liabilities of the selling firm(s) are absorbed by the buying firm”. Here you can check the list of bank mergers in India details completely. Although the buying firm may be a considerably different organization after the merger, it retains its original identity.” Also, in tabular form, we have added the complete list of bank mergers in India for your preparation. There are high chances that in the exam, you can expect questions from the list of bank mergers in India.
An acquisition is when one company purchases most or all of another company’s shares to gain control of that company. Purchasing more than 50% of a target firm’s stock and other assets allows the acquirer to make decisions about the newly acquired assets without the approval of the company’s shareholders. Section 44A of the Banking Regulation Act of 1949, which states that no banking companies shall amalgamate unless a scheme of such amalgamation is required to be approved by a two-thirds majority of shareholders of each amalgamating company. Check the aim, merits, demerits, and more info regarding the list of bank mergers in India.
Here are the merits of bank mergers in India.
These are the demerits of bank mergers in India.
Here is the list of bank mergers in India in the table. You can use it for competitive exam preparations.
| Name of the Bank | Merged with | Year of Merger |
| State Bank of India | Bank of Bihar Ltd | 1969 |
| State Bank of India | National Bank of Lahore Ltd | 1970 |
| Union Bank of India | Miraj State Bank Ltd | 1985 |
| Canara Bank | Lakshmi Commercial Bank Ltd | 1985 |
| State Bank of India | Bank of Cochin Ltd | 1985 |
| Punjab National Bank | Hindustan Commercial Bank Ltd | 1986 |
| Allahabad Bank | United Industrial Bank Ltd | 1989 |
| Indian Bank | Bank of Thanjavur Ltd. | 1990 |
| Central Bank Of India | Purbanchal Bank Ltd. | 1990 |
| Bank Of India | Parur Central Bank Ltd. | 1990 |
| Punjab National Bank | New Bank of India | 1993 |
| Bank of India | Bank of Karad Ltd. | 1994 |
| State Bank of India | Kashinath State Bank Ltd | 1995 |
| Oriental Bank of Commerce | Punjab Co-operative Bank Ltd. | 1996 |
| Union Bank of India | Sikkim Bank Ltd. | 1999 |
| Bank of Baroda | Bareilly Corporation Bank Ltd. | 1999 |
| HDFC Bank Ltd. | Times Bank Ltd. | 2000 |
| ICICI Bank Ltd | Bank of Madura Ltd | 2000 |
| Bank of Baroda | Benares State Bank Ltd. | 2002 |
| ICICI Bank | ICICI Ltd. | 2002 |
| Punjab National Bank | Nedungadi Bank Ltd. | 2003 |
| Oriental Bank of Commerce | Global Trust Bank | 2004 |
| Bank of Punjab(POB) | Centurion Bank | 2005 |
| IDBI Ltd | United Western Bank | 2006 |
| Indian Overseas Bank | Bharat Overseas Bank | 2007 |
| HDFC Bank | Centurion Bank of Punjab | 2008 |
| ICICI Bank | Bank of Rajasthan Ltd. | 2010 |
| Kotak Mahindra Bank | ING Vyasa Bank | 2014 |
| State Bank of India | State Bank of Travancore (SBT) State Bank of Bikaner and Jaipur (SBBJ) State Bank of Hyderabad (SBH) State Bank of Mysore (SBM) State Bank of Patiala (SBP) Bharatiya Mahila Bank (BMB) | 2017 |
| Bank of Baroda | Vijaya Bank and Dena Bank | 2019 |
| Indian Bank | Allahabad Bank | 2020 |
| Union Bank of India | Andhra Bank and Corporation Bank | 2020 |
| Canara Bank | Syndicate Bank | 2020 |
| Punjab National Bank | Oriental Bank of Commerce and United Bank of India | 2020 |
Bank Merging conversations have consequently talked by our finance ministry from a few months before. Most of our public sector banks have got a lot of Non-Performing Assets (NPA) and run out of profit. Meanwhile, the expenses have overtaken the desired revenue for a lot of banks. In order to avoid bankruptcy, our union cabinet has planned to merge our public sector banks.
The merger is important for consolidation and expansion purposes. Mergers have provided great results in terms of saving the weak banks which are going to be crucial in meeting their expectations. The merger will help to create a stronger institution and thereby leading to the institution’s efficiency & stronger balance sheet. Along with that, it will rationalize some important parameters like expenses including branches, employees, technology, etc.
The Mergers are aimed at creating Global Sized Banks in India.
To consult the above points with our top banking higher officials our Union cabinet Finance Minister Nirmala Sitharaman said the exercise of consolidation of 10 public sector banks (PSBs) into a large four state-owned banks is ahead and the merger will come into effect from 1 April 2020.
The Union Cabinet has given a go-ahead for the merger proposal and the government has been in regular touch with these banks.
As per the bank amalgamation plan,
In 2017, There were as many as 27 PSBs in India. Now it will be seven large public sector banks (PSBs), and five smaller ones.
The merger would result in the formation of seven large Public Sector Banks with each merged entity having a business of over Rs 8 lakh crore.
Greater scale and cooperation through the merging would lead to cost benefits which should enable the Public Sector Banks to strengthen their competitiveness and provides a positive impact on our Indian banking system.
The government has amalgamated five associate banks of SBI and Bharatiya Mahila Bank with the State Bank of India. Similarly Last year, Dena Bank and Vijaya Bank were amalgamated with Bank of Baroda.
Sitharaman said, By the amalgamation of Dena Bank and Vijaya Bank with Bank of Baroda, the operating profit has improved and retail loans are now sanctioned from 23 days into 11 days.
State Bank of India(SBI) is India’s Largest Public Sector Banks with a business size of over Rs 52 lakh crore. After that, the Punjab National Bank will become the country’s second-largest bank, with a business size of Rs 17.94 lakh crore.
Bank of Baroda will become the third-largest bank, followed by Canara Bank, Union Bank of India, Bank of India, and Indian Bank.
Here are some FAQs regarding the list of bank mergers in India.
Q: What are the 12 banks after merger?
A: The 12 PSBs after the merger are,
Q: How many PSBs are there in India?
A: After the Public sector bank mergers in India, there are a total of 12 PSBs.
Q: Which is India’s largest bank?
A: HDFC is India’s largest bank. It is a private sector bank.
This post was last modified on November 5, 2022 12:42 pm