The centre may soon announce the merger of 10 public sector banks in a bid to create four big lenders later this week, says a report published in an English daily.
According to a report published in the Economic Times, centre has already completed the groundwork for the amalgamation of the lenders, said sources.
Post the issuance of the notification, the respective bank boards will be meeting to offer their customary final go ahead and fix the all-important swap ratio required for the mergers.
“We are expecting the government to notify the merger this week,” United Bank of India managing director Ashok Kumar Pradhan said.
The banks will need to adhere to the regulatory formalities for protection of the interest of minority shareholders.
Punjab National Bank, Oriental Bank of Commerce and United Bank of India will be merged for creating India’s second-largest lender in terms of business size and branch network. PNB will be the anchor bank for this merger.
Similarly, Union Bank of India will be anchoring the merger of itself with Andhra Bank and Corporation Bank. In other two-way mergers will be Canara Bank and Syndicate Bank will become one, while Indian bank and Allahabad bank will be clubbed.
All the mergers are likely to start from April this year.