Indian Bank Merger Lists

The Indian banking industry is constantly evolving, and in recent years, there has been a significant shift towards consolidation. The Indian government has been encouraging the merger of banks to strengthen the banking system and improve its efficiency. In this article, we will discuss the Indian bank merger details along with lists of the merged banks.

List of Merged Banks in India

Here is a list of the merged banks in India:

Acquirer  Bank Merged Bank
Bank of Baroda
  1. Vijaya Bank
  2. Dena Bank
Canara Bank
  1. Syndicate Bank
Union Bank of India
  1. Andhra Bank
  2. Corporation Bank
Indian Bank
  1. Allahabad Bank
Punjab National Bank
  1. Oriental Bank of Commerce
  2. United Bank of India
State Bank of India
  1. State Bank of Travancore
  2. State Bank of Hyderabad
  3. State Bank of Bikaner and Jaipur
  4. State Bank of Patiala
  5. State Bank of Mysore
  6. Bharatiya Mahila Bank

 

Introduction

India has a vast banking sector with both public and private banks. However, the sector has been facing challenges such as the high level of Non-Performing Assets (NPAs) and low capital adequacy ratios. To address these challenges, the government has been actively encouraging bank mergers. The merger of banks not only helps in consolidating the industry but also enhances the operational efficiency of the banks.

Indian Bank Merger Details

The merger process involves the consolidation of two or more banks to form a single entity. The process involves various stages such as due diligence, valuation, and integration of operations. In India, the government has been actively encouraging bank mergers, and several banks have already undergone the merger process. Lets take a look at some of the Indian bank merger details:

Merger of Bank of Baroda, Vijaya Bank, and Dena Bank

In April 2019, Bank of Baroda, Vijaya Bank, and Dena Bank merged to form the third-largest bank Bank of Baroda in India. The merged entity has a total business of around Rs 15 lakh crore and a network of over 9,500 branches.

Merger of State Bank of India and its associate banks

In April 2017, State Bank of India (SBI) merged with its five associate banks namely State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, and State Bank of Travancore. With this merger, SBI became one of the top 50 banks in the world.

Merger of Oriental Bank of Commerce and United Bank of India

In April 2020, Oriental Bank of Commerce and United Bank of India merged with Punjab National Bank to form the second-largest public sector bank in India. The merged entity has a total business of around Rs 18 lakh crore and a network of over 11,000 branches.

Benefits of Bank Mergers

The consolidation of banks brings several benefits, some of which are:

Improved operational efficiency

The merger of banks leads to the integration of operations, which results in improved efficiency. The merged entity can benefit from economies of scale, which can reduce costs and increase profits.

Increased market share

The merger of banks can result in increased market share, which can help the merged entity to compete better with other banks.

Diversification of business

The merger of banks can help in diversifying the business of the merged entity. The merged entity can offer a wider range of products and services to its customers.

Conclusion

Bank mergers have become a common phenomenon in the Indian banking industry. The government has been encouraging bank mergers to strengthen the banking system and improve its efficiency. In this article, we discussed the Indian bank merger details along with lists of the merged banks. We also highlighted some of the benefits