Bank Mergers
Banking · बैंक विलय
📋Quick Overview
The Indian government has undertaken major bank mergers to create larger, stronger banks that can compete globally. The biggest merger waves happened in 2017 (SBI merger) and 2019-2020 (mega merger of 10 PSBs into 4 anchor banks). Before mergers, India had 27 public sector banks (PSBs). After all mergers, only 12 PSBs remain. The purpose was to create economies of scale, reduce NPAs, improve efficiency, and create globally competitive banks.
27 PSBs reduced to 12 PSBs after mergers | SBI merger (2017): 5 associates + BMB | Mega merger (2020): 10 banks → 4 anchor banks
📖SBI Merger — 2017
On 1 April 2017, SBI merged its 5 associate banks and Bharatiya Mahila Bank (BMB) with itself, making it the largest bank in India and among the top 50 globally.
| Bank Merged | Type |
|---|---|
| State Bank of Bikaner & Jaipur | Associate Bank |
| State Bank of Hyderabad | Associate Bank |
| State Bank of Mysore | Associate Bank |
| State Bank of Patiala | Associate Bank |
| State Bank of Travancore | Associate Bank |
| Bharatiya Mahila Bank (BMB) | Women's Bank (est. 2013) |
📖Mega Merger — 2019-2020
| Anchor Bank | Banks Merged Into It | Effective Date |
|---|---|---|
| Bank of Baroda | Dena Bank + Vijaya Bank | 1 April 2019 |
| Punjab National Bank | Oriental Bank of Commerce + United Bank of India | 1 April 2020 |
| Canara Bank | Syndicate Bank | 1 April 2020 |
| Union Bank of India | Andhra Bank + Corporation Bank | 1 April 2020 |
| Indian Bank | Allahabad Bank | 1 April 2020 |
📝Current 12 Public Sector Banks
- •1. State Bank of India (SBI)
- •2. Punjab National Bank (PNB)
- •3. Bank of Baroda (BoB)
- •4. Canara Bank
- •5. Union Bank of India
- •6. Indian Bank
- •7. Bank of India (BoI)
- •8. Central Bank of India
- •9. Indian Overseas Bank (IOB)
- •10. UCO Bank
- •11. Bank of Maharashtra
- •12. Punjab & Sind Bank
📝Purpose of Bank Mergers
- •Create economies of scale — larger balance sheets
- •Reduce Non-Performing Assets (NPAs)
- •Improve operational efficiency and reduce overhead costs
- •Create globally competitive Indian banks
- •Better risk management and governance
- •Wider technology adoption and digital banking push