InvestorQ : With the latest lockdown in India, what happens to the bank mergers involving large banks like Canara, PNB, UBI and Indian Bank?
Dhwani Mehta made post

With the latest lockdown in India, what happens to the bank mergers involving large banks like Canara, PNB, UBI and Indian Bank?

Answer
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Khushi Patel answered.
6 months ago


Government and RBI have clarified that the merger of ten state-owned banks into four larger banks will be effective from April 1. This came in the light of the Bank officers' unions, appealing to the prime minister to defer the merger due to the lockdown triggered by Coronavirus outbreak. As per the proposed merger scheme, Oriental Bank of Commerce and United Bank of India will be merged into Punjab National Bank; Syndicate Bank into Canara Bank; Allahabad Bank into Indian Bank; and Andhra and Corporation banks into Union Bank of India. Even the swap ratio amongst the banks for the merger has been finalized and agreed upon. Customers and depositors of merging banks will be treated as customers of the acquiring bank.