Public sector lender Canara Bank’s board is most likely to meet on 13 September to consider the government of India’s proposal on capital infusion.
The board is also planning to consider its merger with Syndicate Bank.
“Meeting of board of directors of the bank is scheduled to be held on September 13, 2019, to consider the amalgamation of Syndicate Bank into Canara Bank and to consider capital infusion up to ₹9,000 crore by government of India by way of preferential issue of equity shares subject to necessary approvals,” said Canara Bank said in a regulatory filing.
Last week, the centre announced a mega plan to amalgamate 10 public sector lenders into four in a bid to form fewer and stronger global-sized lenders with better balance sheets, used to boost credit and spur growth.
As per the statement, Syndicate Bank will amalgamate with Canara Bank, while Andhra Bank and Corporation Bank would be a part of Union Bank of India, and Allahabad Bank will merge with Indian Bank. Oriental Bank of Commerce and United Bank will amalgamate with Punjab National Bank to form the nation’s second-largest lender behind State Bank of India.