12/2/2019 Bank Merger News – 10 Public Sector Banks Merger To Be Announced Soon! - Testbook Blog 1/5 Home () » Bank Clerk () Bank Merger News – 10 Public Sector Banks Merger To Be Announced Soon! In recent development, Finance ministry has called a meeting with chief executives of ten public sector banks in order to discuss the possibility of upcoming major bank merges. The National Democratic Alliance (NDA) government has shown green ±ag to its mega plan for merging multiple set of public sector banks (PSB) and is expected to make an announcement anytime soon. Read further to know in detail about this upcoming merger. Such questions are always asked in IBPS PO, SBI PO, IBPS Clerk, SSC CGL, Railway Group D, and other government exams. List of Chief Minister of India () Public Sector Banks Merger 2019 Finance Minister Nirmala Sitaraman announced the merging of PNB, United Bank of India and Oriental bank. After this merger PNB will be the second largest Public Sector Bank in India. FM also announced the merger of Canara Bank & Syndicate Bank. Nirmala Sitaraman stated that Union Bank of India, Andhra Bank and Corporation Bank will be merged soon. Apart from these, Indian Bank will be merged with Illahabad Bank. After this merger, India will get its 7th Major PSU Bank. After these announcements, only 12 Public Sector Banks are remaining in India. Before this, in the year 2017, there were 27 Public Sector Banks. The Public Sector Bank Merger has been taken into consideration to combat the effects of a dull economy. The speculations are to merge 10 Public Sector Banks to form 4 Major Banks. This step will sync in with the vision to transform India into a $5 Trillion Economy. 3 Tier System to be introduced in Banking Structure! The 1st Tier constitutes of at least 3-4 banks of the size of SBI. Tier 2 will constitute of some region-centric banks like Punjab and Sind Bank (BSE 2.55 %) and Andhra Bank (BSE 0.88 %) which continue as independent entities. At the same time, 3 Tier will have some mid-size lenders. Understanding Bank Merger in Indian Economy The Merging of banking is considered as a step towards development in the banking sector. Such mergers give opportunities like raising fresh capital, changing the hiring policy, etc. to the government . However, for those of you preparing for Banking jobs along with govt exams, the implications appear in the form of vacancies, career prospects, salary, location, etc. Read this article to know more about PNB and Bank of Baroda Merger. Merger of Banks – Public Sector Banks If Consolidation of banks takes place then banks will have higher asset strength & increase in the capital base. Also, the problem of Non-Performing Assets (NPAs) & other problem like Capital Requirement which are faced by the banks can be resolved to some extent.
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- public sector banks, Union Bank of India, Banks of India, Government-owned banks in India, Testbook Blog, Canara Bank & Syndicate Bank