3 banks to merge into PNB
With the new government formation around the corner, the process of restructuring of banks has accelerated. According to sources, Oriental Bank of Commerce, Andhra Bank, Allahabad Bank may merge in PNB.
According to sources, the Center has tried to merge the small and regional banks running in the deficit in a big bank so that they could reduce the debt and provide better facilities to the customers. After the new government comes, this proposal of merger will be presented to the cabinet soon and PNB can take control of these banks in the next three months. According to sources, the government is considering providing 48,757 crore rupees as subsidy to provide affordable loans to customers.
Drop in shares
After the news, shares of PNB fell by 2.55 per cent. Allahabad Bank’s shares were down 2.6 per cent and Oriental’s shares dropped one per cent.
Earlier Vijaya Bank and Dena bank merged with BOB
There are 20 public banks in the country right now. Five subsidiary banks have also been merged with SBI in the year 2017. In the last financial year, LIC took control of IDBI Bank. The merger of Vijaya and Dena Bank in Bank of Baroda has been effective from April 1 this year. After this, Bank of Baroda was the second largest bank after SBI, which has about 9500 branches, 13,400 ATMs, 85 thousand employees and 12 million subscribers. New bank is preparing to close 900 to 950 branches under the expenditure cut.
Employment opportunities to be effected due to merger
Ashwini Rana, general secretary of Delhi State Bank Workers Organization said that no such notification has been issued by the government so far, but perhaps one such proposal is ready. On the merger of Dena and Vijaya Bank in Bank of Baroda, he said that now all the branches and administrative offices are being merged, thereby reducing the new employment opportunities in the banking sector. If there is any merger of any branch of Vijaya Bank, then the burden of work will increase in that branch and it may also increase the distance of the bank from the customer. It will also affect the job seekers. After the merger of Dena and Vijaya Bank, Bank of Baroda has declared closure of 950 branches two days ago.
