Merger is nothing but amalgamation of two groups into single entity. Merger is a process of combining two business entities under the common ownership. Usually merger occurs when an independent bank loses its charter and becomes a part of an existing bank.
In 1960s, the Indian banking industry had turned into an efficient tool to facilitate the development of the Indian economy. At the same time, it had emerged as a large employer, and a debate had ensued about the nationalization of the banking industry.
In 1969 the Prime Minister Indira Gandhi initiated the process of nationalization of banks. Since then a number of mergers have taken place.
Bank Merger 2019
The government of India (GoI) has announced for merging of banks in 2019, in-order to revive them from the 6 year low economy due to sudden slowed economic growth.The current finance minister Smt. Nirmala Sitharaman announced for merger of 10 public sector banks into 4. After the mergers the country will have only 12 public sector banks. The anchor banks for this merger are the Punjab National Bank, Canara Bank, Union Bank of India and the Indian Bank. Prior to this announcement, in April 2019, Vijaya Bank and Dena Bank (amalgamating banks) were merged into Bank of Baroda
Rank of banks after the above amalgamation:
The independent PSU banks in 2019: Currently in 2019, there are 6 Public Sector Unit (PSU) banks that remain independent without any merger with other banks. They are
Capital infusion in PSU 2019: Finance Minister Sitharaman announced capital infusion in the Public Sector Banks(PSB) with Rs 55,250 Crore of capital in 2019.
2018:
IDFC first bank: The non-banking financial company (NBFC) Capital First completely merged with IDFC bank on 18th December 2018 to form the IDFC First Bank. The announcement for the merger was made on 13th January 2018. The IDFC First bank has a loan asset book of Rs 1.03 lakh crore.
MD&CEO: V Vaidyanathan, the founder and chairman of Capital First Ltd, has been appointed as the Managing Director(MD) and Chief Executive Officer(CEO) of the newly formed IDFC First bank.
From 2010 to 2017
From 2000 to 2009
From 1990 to 1999
Before 1990
In 1960s, the Indian banking industry had turned into an efficient tool to facilitate the development of the Indian economy. At the same time, it had emerged as a large employer, and a debate had ensued about the nationalization of the banking industry.
In 1969 the Prime Minister Indira Gandhi initiated the process of nationalization of banks. Since then a number of mergers have taken place.
Bank Merger 2019
The government of India (GoI) has announced for merging of banks in 2019, in-order to revive them from the 6 year low economy due to sudden slowed economic growth.The current finance minister Smt. Nirmala Sitharaman announced for merger of 10 public sector banks into 4. After the mergers the country will have only 12 public sector banks. The anchor banks for this merger are the Punjab National Bank, Canara Bank, Union Bank of India and the Indian Bank. Prior to this announcement, in April 2019, Vijaya Bank and Dena Bank (amalgamating banks) were merged into Bank of Baroda
| Anchor Banks | Amalgamating banks | Net worth | Bank size after amalgamation |
|---|---|---|---|
| Punjab National Bank | Oriental Bank of Commerce & United Bank of India | Rs 17.94 lakh crore | Second largest bank in India |
| Canara Bank | Syndicate Bank | Rs 15.20 lakh crore | Fifth largest bank in India |
| Union Bank of India | Andhra Bank & Corporation Bank | Rs 8.08 lakh crore | Seventh largest bank in India |
| Bank of Baroda | Vijaya Bank & Dena Bank | Rs 16.13 lakh crore | Third largest bank in India |
| Rank | Bank |
|---|---|
| 1 | State Bank of India |
| 2 | Punjab National Bank |
| 3 | Bank of Baroda |
| 4 | Canara Bank |
| 5 | Union Bank of India |
| 6 | Bank of India |
| 7 | Indian Bank |
| 8 | Central Bank of India |
| 9 | Indian Overseas Bank |
| 10 | UCO bank |
| 10 | UCO bank |
| 11 | Bank of Maharashtra |
| 12 | Punjab and Sind Bank |
| S.NO | Bank |
|---|---|
| 1 | Indian Overseas Bank(IOB) |
| 2 | UCO bank |
| 3 | Bank of Maharashtra |
| 4 | Punjab and Sind Bank |
| 5 | Union Bank of India |
| 6 | Central Bank of India |
| Bank | Capital infusion |
|---|---|
| Punjab National Bank | Rs 16,000 crore |
| Union Bank of India | Rs 11,700 crore |
| Bank of Baroda | Rs 7,000 crore |
| Canara bank | Rs 6,500 crore |
| Indian Overseas Bank | Rs 3,800 crore |
| Central Bank of India | Rs 3,300 crore |
| Indian Bank | Rs 2,500 crore |
| UCO Bank | Rs 2,100 crore |
| United Bank of India | Rs 1,600 crore |
| Punjab and Sind Bank | Rs 750 crore |
2018:
| Anchor Banks | Amalgamating banks | Net worth | Bank size after amalgamation |
|---|---|---|---|
| IDFC | Capital First | IDFC First Bank | Rs 1.03 lakh crore. |
IDFC first bank: The non-banking financial company (NBFC) Capital First completely merged with IDFC bank on 18th December 2018 to form the IDFC First Bank. The announcement for the merger was made on 13th January 2018. The IDFC First bank has a loan asset book of Rs 1.03 lakh crore.
MD&CEO: V Vaidyanathan, the founder and chairman of Capital First Ltd, has been appointed as the Managing Director(MD) and Chief Executive Officer(CEO) of the newly formed IDFC First bank.
From 2010 to 2017
| Name of the Banks Acquired | Name of the Banks got Merged | Year of Merging happened |
|---|---|---|
| State Bank of India | Bharatiya Mahila Bank (BMB) | 2017 |
| State Bank of India | State Bank of Travancore (SBT) | 2017 |
| State Bank of India | State Bank of Bikaner and Jaipur (SBBJ) | 2017 |
| State Bank of India | State Bank of Hyderabad (SBH) | 2017 |
| State Bank of India | State Bank of Mysore (SBM) | 2017 |
| State Bank of India | State Bank of Patiala (SBP) | 2017 |
| State Bank of India | ING Vyasa Bank | 2014 |
| State Bank of India | Bank of Rajasthan Ltd. | 2010 |
From 2000 to 2009
| Name of the Banks Acquired | Name of the Banks got Merged | Year of Merging happened |
|---|---|---|
| Bank of Baroda | Bareilly Corporation Bank Ltd | 1999 |
| Union Bank of India | Sikkim Bank Ltd | 1999 |
| Oriental Bank of Commerce | Bari Doab Bank Ltd | 1997 |
| Oriental Bank of Commerce | Punjab Co-operative Bank Ltd | 1996 |
| State Bank of India | Kashinath State Bank Ltd | 1994 |
| Bank of India | Bank of Karad Ltd | 1994 |
| Punjab National Bank | New Bank of India | 1993 |
| Bank Of India | Parur Central Bank Ltd | 1990 |
| Central Bank Of India | Purbanchal Bank Ltd | 1990 |
| Indian Bank | Bank of Thanjavur Ltd | 1990 |
| Indian Overseas Bank | Bank of Tamilnadu Ltd | 1990 |
From 1990 to 1999
| Name of the Banks Acquired | Name of the Banks got Merged | Year of Merging happened |
|---|---|---|
| Bank of Baroda | Bareilly Corporation Bank Ltd | 1999 |
| Union Bank of India | Sikkim Bank Ltd | 1999 |
| Oriental Bank of Commerce | Bari Doab Bank Ltd | 1997 |
| Oriental Bank of Commerce | Punjab Co-operative Bank Ltd | 1996 |
| State Bank of India | Kashinath State Bank Ltd | 1994 |
| Bank of India | Bank of Karad Ltd | 1994 |
| Punjab National Bank | New Bank of India | 1993 |
| Bank Of India | Parur Central Bank Ltd | 1990 |
| Central Bank Of India | Purbanchal Bank Ltd | 1990 |
| Indian Bank | Bank of Thanjavur Ltd | 1990 |
| Indian Overseas Bank | Bank of Tamilnadu Ltd | 1990 |
Before 1990
| Name of the Banks Acquired | Name of the Banks got Merged | Year of Merging happened |
|---|---|---|
| Allahabad Bank | United Industrial Bank Limited | 1989 |
| Bank of Baroda | Traders Bank Ltd | 1988 |
| Punjab National Bank | Hindustan Commercial Bank Ltd | 1986 |
| State Bank of India | Bank of Cochin Ltd | 1985 |
| State Bank of India | Kashinath State Bank Ltd | 1994 |
| Canara Bank | Lakshmi Commercial Bank Ltd | 1985 |
| Union Bank of India | Miraj State Bank Ltd | 1985 |
| State Bank of India | National Bank of Lahore Ltd | 1969 |
| State Bank of India | Bank of Bihar Ltd | 1990 |
