According to sources, the government’s plan for the second round of merger of PSU banks is ready. Two options have been considered for the merger of four small government banks.
PSU Bank Merger: There is big news related to the merger of government banks. According to sources, the government’s plan for round 2 of merger of PSU banks is ready. 2 options have been considered for the merger of 4 small government banks. The government is preparing to amend the Banking Regulation Amendment Act for the merger.
PSU Bank Merger: Two options for bank merger
According to sources, the government has prepared a plan for the second round of merger of PSU banks. Two options will be considered for the merger of four small government banks. The first option could be the merger of UCO Bank, Bank of Maharashtra and Punjab & Sind Bank, Central Bank of India. The second option is to merge with Union Bank of India, Canara Bank or Indian Bank according to the banking software.
For the merger, the government is preparing to amend the Banking Regulation Amendment Act. The performance of UCO Bank, Punjab & Sind has improved in 2-3 years. At the same time, the performance of Bank of Maharashtra, Central Bank has also improved in 2-3 years.
Government’s share in PSU banks
Let us tell you that the government has a 98.25% share in Punjab & Sind Bank. Whereas the government has a 93.08% share in Central Bank, 86.46% in Bank of Maharashtra and 95.39% in UCO Bank.
Merger of 10 Public Sector Banks in 2019
The government had announced the merger of 10 public sector banks into four entities in 2019. This was part of the government’s policy to strengthen public sector banks (PSU Bank Mergers) to strengthen their finances for a strong national presence and global reach.
