- On 4 March, the Union Cabinet allowed the merger of 10 public sector banks (PSBs) into four entities.
- OBC and United Bank of India shareholders will receive 1,150 shares and 121 shares of PNB, respectively, for each 1,000 shares of their parent bank, according to regulatory filings.
On thursday board of Punjab National Bank (PNB) and Union Bank of India has approved for merger ratios with 4 other banks as per government exercise to Merge 10 Banks into 4 Banks.
According to a regulatory filing Thursday, Syndicate Bank shareholders will receive 158 Canara Bank shares for every 1,000 shares of their bank.
Banks that are going to Merge are:-
- Oriental Bank of Commerce (OBC) and the United Bank of India are to merge with PNB
- Andhra Bank and Corporation Bank are to merge with Union Bank of India.
OBC and United Bank of India shareholders will receive 1,150 shares and 121 shares of PNB, respectively, for every 1,000 shares in their parent bank, according to regulatory filings. Meanwhile, the shareholders of Andhra Bank and Corporation Bank will receive 325 and 330 shares, respectively, of Union Bank of India for every 1,000 shares of their bank.
The other banks that are expected to merge are Indian Bank and Allahabad Bank, and Canara Bank and Syndicate Bank. However, these banks have not yet reported the ratios for the merger.
On 4 March, the Union cabinet approved the consolidation of 10 public sector banks (PSBs) into four entities, a development that aims to have fewer but stronger lenders across India.
“These steps are taken so that consumers can benefit from the expansion of larger banks and more credit funds available”
Previous Share closes of these Banks are:-
- Union Bank of India’s shares closed at approximately 39.35 (up 8.25% from the previous close)
- Andhra Bank closed at approximately 113.52 (3.76% higher)
- Corporation Bank closed at approximately 19.05 (2.14% higher).
- Punjab National Bank’s shares on BSE were closed at some 44.9 (1% higher than previous close)
- Oriental Bank of Commerce closed at some 47.05 (up 15.89%)
- United Bank of India closed at some 7.5 (3.03% higher).
In the merger of Bank of Baroda (BoB) with Dena Bank and Vijaya Bank, Vijaya Bank and Dena Bank shareholders received 402 and 110 BoB shareholdings for every 1,000 shares they owned.
In April 2017, State Bank of India (SBI) merged five of its subsidiaries —
- State Bank of Bikaner and Jaipur (SBBJ),
- State Bank of Mysore (SBM),
- State Bank of Travancore (SBT),
- State Bank of Hyderabad (SBH)
- State Bank of Patiala (SBP)
- Bharatiya Mahila Bank (BMB)—
The step, which made SBI one of the top 50 big banks worldwide in terms of assets and saw 4,000 SBI employees and associate banks opting for voluntary retirement.
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