InvestorQ : When will the bank mergers of the 10 large PSU banks like PNB, Union Bank and Canara Bank be finalised? Is the RBI on target for 01st April as claimed by the finance minister?
Anjana Aiyar made post

When will the bank mergers of the 10 large PSU banks like PNB, Union Bank and Canara Bank be finalised? Is the RBI on target for 01st April as claimed by the finance minister?

Answer
user profile image
Arya Nanda answered.
7 months ago


There is one more positive step in that direction with 3 out of the 4 principal banks announcing their swap ratio for the merger. It is positive that just a day after the finance minister announced that bank mergers would be effective from April 01st 2020, 3 of the banks have gone ahead and announced the swap ratio.

PNB will merge with OBC in the swap ratio of 1.15:1 and with United Bank of India in the swap ratio of 0.12:1. Union Bank will absorb Andhra Bank in the swap ratio of 0.325:1 and it will amalgamate Corporation Bank in the ratio of 0.33:1. Canara Bank will absorb Syndicate Bank in the ratio of 0.58:1.

Only Indian Bank is yet to announce its swap ratio for Allahabad Bank. PSU banks had put off their strike earlier this month but have now decided to go ahead and call for a fresh strike on 27 March against the merger. This will coincide with annual closing.