Here are the new behemoths of public sector banking

PNB displaces BoB as the second largest PSB after the ‘Big Bank’ reforms

GN Bureau | August 31, 2019


#reforms   #finance ministry   #Nirmala Sitharaman   #Banking  
Finance minister Nirmala Sitharaman making a presentation on consolidation in the public sector banking on Friday
Finance minister Nirmala Sitharaman making a presentation on consolidation in the public sector banking on Friday

Finance minister Nirmala Sitharaman has announced what is described as ‘Big Bank’ reforms, consolidating the public sector banking by merging 10 banks into four. This will make Punjab National Bank the second largest PSB in the country after State Bank of India, displacing Bank of Baroda.

Why consolidation
* Strong banks are necessary to achieve the target of making India a $5 trillion economy by 2024
* Big banks will have enhanced capacity to increase credit
* They will have more national presence and global reach
* Their operational efficiency will increase and cost of lending will go down

Here is an overview of the new, bigger banks after the merger announced on Friday:

Punjab National Bank + Oriental Bank of Commerce + United Bank
* The new bank (PNB) will be the second largest bank with business worth Rs 17.95 lakh crore
* It will have the second largest branch network, with 11,437 branches
* High CASA and lending capacity combined in the new consolidated bank
* Large cost reduction potential due to network overlaps

Canara Bank + Syndicate Bank
* The new bank will be the fourth largest bank with business worth Rs 15.20 lakh crore
* It will have the third largest branch network, with 10,342 branches

Union Bank of India + Andhra Bank + Corporation Bank
* The consolidated bank will be the fifth largest bank with business worth Rs 14.59 lakh crore
* It will have the fourth largest branch network, with 9,609 branches
* Business to grow two to 4.5 times
* Large cost reductions possible now

Indian Bank + Allahabad Bank
* The new bank will be the seventh largest bank with business worth Rs 8.08 lakh crore
* It will have nationwide presence with strong footprint in the south, north and east
* The business size will double

Bank of Baroda + Vijaya Bank + Dena Bank
* The three were merged into one, BoB, last year. It now stands as the third largest public sector bank
 

Comments

 

Other News

‘Oral cancer deaths in India cause productivity loss of 0.18% GDP’

A first-of-its-kind study on the economic loss due to premature death from oral cancer in India by the Tata Memorial Centre has found that this form of cancer has a premature mortality rate of 75.6% (34 premature events / 45 total events) resulting in productivity loss of approximately $5.6 billion in 2022

Days of Reading: Upendra Baxi recalls works that shaped his youth

Of Law and Life Upendra Baxi in Conversation with Arvind Narrain, Lawrence Liang, Sitharamam Kakarala, and Sruti Chaganti Orient BlackSwan, Rs 2,310

Voting by tribal communities blossoms as ECI’s efforts bear fruit

The efforts made by the Election Commission of India (ECI), over last two years, for inclusion of Particularly Vulnerable Tribal Groups (PVTG) communities and other tribal groups in the electoral process have borne fruit with scenes of tribal groups in various states/UTs participating enthusiastically in t

GST revenue for April 2024 at a new high

The gross Goods and Services Tax (GST) collections hit a record high in April 2024 at ₹2.10 lakh crore. This represents a significant 12.4% year-on-year growth, driven by a strong increase in domestic transactions (up 13.4%) and imports (up 8.3%). After accounting for refunds, the net GST

First Magahi novel presents a glimpse of Bihar bureaucracy a century ago

Fool Bahadur By Jayanath Pati (Translated by Abhay K.) Penguin Modern Classics, 112 pages, Rs 250 “Bab

Are EVs empowering India`s Green Transition?

Against the backdrop of the $3.5 billion Production-Linked Incentive (PLI) scheme launched by the Government of India, sales of Electric Vehicles (EVs) are expected to grow at a CAGR of 35% by 2032. It is crucial to take into account the fact that 86% of EV sales in India were under the price bracket of $2

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter