- Research/Scholar Paper name – “Amalgamation of banks in India: A study of the amalgamation in 2019”
- Author: Pratyasha Roul
- Institution: Kalinga Institute of Industrial Technology, Bhubaneswar, Odisha
- Affiliation: Centre for Study of Contemporary Legal Issues
- Date of Publication: 03/09/2021
In a bid to create financial institutions with stronger balance sheets and greater risk appetite, on August 30, 2019, the Indian government revealed a proposal to consolidate 10 public sector banks (PSBs) into 4. The government consolidated banks twice earlier for an economy worth $5 trillion and a robust banking system. As a result of this merger, Indian banks will be more globally competitive. As a result of the acquisition, Punjab National Bank will in terms of business, has surpassed State Bank of India to become the country’s second-largest lender. There will be a merger of Syndicate Bank and Canara Bank, and Union Bank of India and Allahabad Bank will simultaneously merge. These mergers were driven by technological platform, customer reach, cultural similarities, and competitiveness. During the previous term of the National Democratic Alliance government, India had 27 PSBs. Firstly, five associate banks and Bharatiya Mahila Bank merged with SBI (from April 2017); secondly, Dena Bank and Vijaya Bank merged with Bank of Baroda to become the third-largest lender in the country on April 1 is a topic of this research paper. As part of the government’s plan to bolster the capital base of these banks, the ten public-sector banks were to be consolidated into four large institutions.