PNB, Union Bank bags in-principal approval from centre for proposed merger

PNB

Punjab National Bank and Union Bank of India have received in-principal nod from the centre for their merger with other public sector banks.

PNB

“Bank has received a letter dated November 13, 2019 from Department of Financial Services, Ministry of Finance vide which bank has been advised that Alternative Mechanism (AM), has accorded in-principle approval to proposed amalgamation of Oriental Bank of Commerce and United Bank of India into Punjab National Bank,” said Punjab National Bank in a regulatory filing.

While Punjab National Bank is the transferee bank, Oriental Bank of Commerce and United Bank of India are transferor banks.

In a separate filing, Union Bank of India said, “The bank has received a communication from ministry of finance on November 16, 2019 stating that the alternative mechanism has accorded in-principle approval to proposed amalgamation of the Andhra Bank and Corporation Bank into Union Bank of India”.

While Union Bank of India is the transferee bank, Andhra Bank and Corporation Bank are the trasferor banks.

In August this year, the central government had announced four high-level mergers of public sector banks, slashing down their total number to 12 from 27, a move positioned at making public lenders lenders global sized banks.

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