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

On A Personal note with musician Apache Indian

Renowned British singer, songwriter and reggae DJ, Apache Indian (originally known as Steven Kapoor) shot to fame with his style of music which came to be known as bhangramuffin (also called bhangragga) – a mix of bhangra, reggaemuffin and traditional dance hall in the early 1990s. His style changed

Traffic fines: Find the sweet spot between penalty and self-goal

When close to five lakh people are killed in road accidents every year in India, road transport minister Nitin Gadkari should have been complimented on his not-so-populist move to impose higher fines for traffic violations. Instead, many people are unhappy and several states – mostly ruled by the BJP

A unique project gives new life to a chaotic Mumbai fishing village

Traditional fishermen or Kolis; synonymous with feasting, song and dance; are the original inhabitants of Mumbai. For generations, they have loved their vocation and prided in it. But their work and lifestyle are facing threats from reclamation, land acquisition by builders, lack of sustainable fishing pra

Modi pledges higher target for degraded land restoration

Addressing the Conference of Parties (COP14) to the United Nations Convention to Combat Desertification (UNCCD), Prime Minister Narendra Modi on Monday announced that India would raise its target of the total area that would be restored from its land degradation status from 21 million hectares to 26 millio

How to enhance water security and also increase agri productivity

Scheduling irrigation, constructive use of water, proper crop selection and utilising modern irrigation technologies will help enhance water security while also ensuring a high agricultural productivity, says T. Mohapatra, director general of the Indian Council of Agricultural Research (ICAR).



Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter