United Bank of India, Punjab National Bank and Oriental Bank of Commerce will complete the merger process by April 1 next year. The two banks are to be merged with Punjab National Bank (PNB). After the merger is completed, PNB will be the second-largest public sector bank with a capital of Rs 18 lakh crore.
No staff cuts
The three banks gave this information in a customer meeting organized jointly. During this time it was said that after the merger there would be no cuts in its staff. Banks have also ruled out the possibility of VRS. After the merger, the total number of employees will be around one lakh.
Four banks will be formed by joining 10 banks
Significantly, Finance Minister Nirmala Sitharaman announced the merger of 10 state-run banks last month. Four banks are to be formed by combining these 10 banks. The government has announced to invest Rs 16,000 crore in PNB, which is struggling with fund crunch and Rs 1,600 crore in UBI.
Which bank will be merged?
Like these three banks, Union Bank of India, Andhra Bank, and Corporation Bank will merge, which will be the fifth-largest PSU bank in the country. Its business will be Rs 14.59 lakh crore. Similarly, Indian Bank will merge with Allahabad Bank. It will become the seventh-largest PSU bank in the country. Its business will be Rs 8.08 lakh crore. Canara Bank and Syndicate Bank will merge. It will be the fourth largest PSU bank in the country. Its business will be Rs 15.20 lakh crore. Explain that earlier Vijaya Bank and Dena Bank have been merged with Bank of Baroda.
Government banks have more rights
Finance Minister Nirmala Sitharaman had announced the merger of the banks, saying that to make the management of banks accountable to the board, the board committee of state-run banks will now assess the performance of the general manager and above. After the merger, banks will also have the right to create the post of Chief General Manager according to their business needs