Finance Minister announces Merger of banks | Fusion - WeRIndia

Union Finance Minister Nirmala Sitharaman on Friday announced the merger of Punjab National Bank (PNB), Oriental Bank of Commerce (OBC) and United Bank of India.

She says that the target bank, i.e. Punjab National Bank would be the second-largest public sector bank with a business of ₹17.95 lakh crore.

She revealed that the government has plans to merge some other banks.

These are:

• Canara Bank and Syndicate Bank
• Union Bank of India, Andhra Bank and Corporation Bank
• Indian Bank and Allahabad Bank
• The government would not interfere in the commercial decisions of banks.

She said the merger of banks would strengthen the banking sector and boost the economy.

Sitharaman added that bad loans in the banking sector have been reduced to ₹7.9 lakh crore which was 8.65 lakh crore by the end of December 2018.

The merger of Union Bank of India, with Andhra Bank and Corporation Bank will make the fifth largest public sector bank.

At the same time, the merger of Indian Bank and Allahabad Bank would be the seventh-largest Public Sector Bank with a business of ₹8.08 lakh crores.

The government wants to reduce the number of banks to 12 from 27. She also said that banks would be provided with enough capital.

The benefits of employment and HR policies will improve with the amalgamation.

Though the minister says that there would be no retrenchment, mergers tend to have job losses.

As of now, no employee may not lose his/her job. However, in future, there may be a chance.

Experts also analyze that it might affect future employment and there may not be a need of as many employees as there are at present.

It is difficult to get a bank job for the aspirants as the number of positions would be reduced.

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