Daijiworld Media Network - New Delhi

New Delhi, Aug 30: After Vijaya Bank was merged with Dena Bank and Bank of Baroda (BoB), three other banks which had its genesis in the undivided district of Dakshina Kannada are all set to merge. 

Finance Minister Nirmala Sitharaman on August 30 announced the merger of 10 public sector banks. “Canara Bank will be merged with Syndicate Bank. Indian Bank will be merged with Allahabad Bank. PNB, OBC and United Bank will be merged and PNB will be the anchor bank. Union Bank of India, Andhra Bank and Corporation Bank will be merged,” she declared. 

“In place of fragmented lending capacity with 27 public sector banks in 2017, now there will be 12 public sector banks post the latest round of consolidation of PSU banks. The consolidation of public sector banks will give them scale,” Sitharaman said. 

After the merger, Canara Bank and Syndicate Bank will be 4th largest public sector bank with ?15.2 lakh crore business. Consolidated Union Bank of India, Andhra Bank and Corporation Bank will be the 5th largest public sector banks with Rs 14.6 lac crore business. Indian Bank and Allahabad Bank will be the 7th largest public sector bank with Rs 8.08 lac crore business after merger. 

Last year, the government had approved the merger of Vijaya Bank and Dena Bank with Bank of Baroda (BoB) that has become effective from April 1, 2019. In 2017, the State Bank of India absorbed five of its associates and the Bharatiya Mahila Bank. 

“We want banks with strong national presence and enhanced risk appetite. No retrenchment has taken place post merger of Bank of Baroda, Dena Bank and Vijaya Bank; staff has been redeployed and best practices in each bank have been replicated in others,” she said.

Bank staff to protest against mega bank merger move 

(IANS): The United Forum of Bank Unions (UFBU), the umbrella body of nine banking sector trade unions, has called for demonstrations across the country on Saturday to protest against the mega bank merger plan announced by the government on Friday, a top banking union leader said.

All India Bank Employees' Association (AIBEA) General Secretary C.H. Venkatachalam said that bankers will hold massive demonstrations on Saturday all over the country and also wear black badges.