Centre may soon merge PNB, OBC, Andhra Bank: Report

Public sector Banks

Public sector BanksAfter announcing the merger of three Public sector Banks (PSBs), Centre is reportedly planning the amalgamation of Punjab National Bank, Andhra Bank and Oriental Bank of Commerce.

As per the industry sources, the centre is willing to create few large PSBs and therefore it is analysing the idea to PNB, OBC and Andhra Bank.

Reportedly, the centre is holding discussions with banking officials to look at the viability of such a merger and will likely announce the move before December 31.

On September 17, the centre announced the proposal to merge three public lenders namely Bank of Baroda, Dena Bank and Vijaya Bank. Sources suggest that government is likely to approve a scheme pertaining to the merger of Dena Bank, Vijaya Bank and BoB next week.

The three state-run banks are asked to adhere to a strict timeline and follow necessary regulatory process by the end of 2018-19 and the merged entity should be operational from April 1, 2019.

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