The aim of the research, the results of which are presented in this paper, was to determine factors responsible for the merger of Punjab National Bank, Oriental Bank of Commerce and United Bank. We can see emergence of largest Public Sector Banks after State Bank of India with Rs 18 Lakh Crore business and impressive networking of branch in India. To boost the economy of the country, Nirmala Sitharaman Finance Minister of India announced creation of four big banks by amalgamating 10 public sector banks. This leads reduction of Public Sector Banks in the country to 12 from 27 banks in 2017. Merged bank will operate with new name and logo from 1st April, 2020.
|
Anchor Bank |
Amalgamating Bank |
Core Banking System |
Public Sector Banks Rank by size |
Year of Acquisition |
|
Punjab National Bank |
Oriental Bank Of Commerce |
Finacle |
2nd largest |
August 2019 |
|
|
United Bank of India |
|
|
|
Summary of Punjab National Bank, Oriental Bank of Commerce and United Bank:
|
|
PNB |
OBC |
United Bank of india |
Amalgamated Bank |
|
Total Business (in Crore Rs) |
11,82,224 |
4,04,194 |
2,08,106 |
17,94,526 |
|
Gross advances (in Crore Rs) |
5,06,194 |
1,71,549 |
73,123 |
7,50,867 |
|
Deposits ( in Crore Rs) |
6,76,030 |
2,32,645 |
1,34,983 |
10,43,659 |
|
CASA ratio |
42.16% |
29.40% |
51.45% |
40.52% |
|
Domestic branches |
6,992 |
2,390 |
2,055 |
11,437 |
|
PCR |
61.72% |
56.53% |
51.17% |
59.59% |
|
CET-I Ratio |
6.21% |
9.86% |
10.14% |
7.46% |
|
CRAR ratio |
9.73% |
12.73% |
13.00% |
10.77% |
|
Net NPA ratio |
6.55% |
5.93% |
8.67% |
6.61% |
|
Employees |
65,116 |
21,729 |
13,804 |
1,00,649 |
The research consists of two parts. The first one presents a review of literature on the subject, the major changes after merger of these three banks in Indian banking system. The second part of the research is demonstrating the demerits of merger of banks on public.
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Keywords: Merger, Finacle, Public Sector Banks, NPA, amalgamation.
