MERGER OF PSBs TO MAKE 'MEGA BANKS'

[MOHAN P]

Just for information:

The number of  existing 12 Public Sector Banks (PSBs) in India, which have been consolidated down from a larger number through a series of government mergers may be further reduced   into three larger "Mega Banks" has been widely discussed and reported in the financial press, though no official plan for this specific configuration has been announced as of late 2025. 

What the PSB merger plan entails

The concept of reducing India's state-owned banks to a handful of large, globally competitive institutions has been around for years. 

Financial news reports in 2025 indicated that the government was considering further consolidation of the 12 PSBs into three or four large banks as part of its "Viksit Bharat 2047" plan. The goal is to create stronger, more competitive banks with a larger global presence. 

Potential bank combinations

While no official mergers have been decided, financial analysts and reports have speculated on how the banks might be combined. 

One potential scenario involves grouping banks based on their size or technological compatibility:

• Mid-tier banks: One group could combine mid-sized lenders such as UCO Bank, Central Bank of India, Punjab & Sind Bank, and Bank of Maharashtra.
• Large banks: Another group could merge some of the larger PSBs, such as Canara Bank, Indian Bank, and Union Bank.
• SBI plus others: Other potential super-groups are also speculated, but merging giant banks like the State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB), and Bank of India (BoI) is considered a more difficult and complex regulatory proposition. 

Past bank consolidations

The move to reduce the number of PSBs has been ongoing for several years:

• 2017: The government merged five associate banks of the State Bank of India (SBI), along with the Bharatiya Mahila Bank, into SBI.
• 2019-2020: In a major consolidation effort, ten PSBs were merged into four anchor banks—Punjab National Bank, Canara Bank, Union Bank of India, and Indian Bank—bringing the total number of PSBs down to 12. 

[JSOMA SHEKARA]

The government has ruled out further mergers. Instead the government aims to expand existing  banks to global expansion by strict governance  leveraging AI. 

--
Visit our blog site http:://bankpensioner.blogspot.com
---
You received this message because you are subscribed to the Google Groups "bankpensioner" group.
To unsubscribe from this group and stop receiving emails from it, send an email to bankpensione...@googlegroups.com.
To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAMCbyDRDC%3D_OcTP2B%3DhtRwuND7O2dMcBToAOs6Q3WF1ob7-%3Dpw%40mail.gmail.com.

[Suranjan Kanjilal]

Actually there are no unions and associations in the banking  sector to fight relentlessly to stop this harmful merger of PSBanks time & again by the cent. govt. In the pretext of making three strongest mighty banks , who would be able to position themselves as reconed in the list of most twenty strongest banks in the world by balance sheets . It would never happen in foreseeable future . Actual purpose of the govt. is to PRIVATIZE all existing Public Sector Banks 

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAM%3DeiW1DGMNX4Cfk2q6DEdt0OKPy5x9Y%2B5CH3713PfHyRQJ_5g%40mail.gmail.com.

[KRISHAN KANT VERMA]

All this drama of merging banks is a sham and looting the public till Government shareholding is not brought down to less than 50 percent

Public Sector Banks have been the worst wealth destroyers 

The Government should bring down the shareholding to less than 25 percent to ensure real efficiency and effectiveness 

Krishan Kant Verma

9414220208

9816120208

SOLAN HP

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAE8Zo%3DXgHnM4L2-%3DdLotTmpzPirZtmTownC6hviSo-XWCuj-YQ%40mail.gmail.com.

[Murali]

Thanks for the informative email. While consolidation of the smaller among PSBs is quite welcome, what does the Government intend to achieve by this exercise?

1. Greater efficiency in terms of stronger and uniform systems and procedures, supervision and control and better operational synergies are all mythical if the outcome of past mergers are anything to go by. 

It made the merged entities top heavy and gave rise to asymmetrical branch networks post merger.

Confusion, discontentment at operational levels due to turf wars percolating top down.

2. What is the purpose of creating mega entities if the BOD of merged banks are not entrusted with functional autonomy? Staff matters euphimistically known by the acronym HRD are managed from DFS, GoI. Be it leave rules, transfers, promotions, incentives for performance, fixation of pay scales, rewards and punishment - name one aspect of staff management where the Bank boards are free to act independently?

In conclusion, when you create mega banks, SBI, PNB, Canara, Union and Indian Bank are already in the list, empower them to handle the details and trust the RBI to do financial supervision ( even supervision is becoming a dirty word, Bank boards are not kindergarten kids, management is more apt) best - they surely know their job better  than any career government servant.

As for staff matters, Finance Ministry - please exit completely. Your breathing down the necks of career bankers has throttled them beyond redemption already.

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAF%2B51oPzZaQN92vF6SoazDONw7ZvhB9ZVMXRuqA8G69fZUHcrg%40mail.gmail.com.

[JSOMA SHEKARA]

As retirees we have no voice or platform to resist mergers of Banks. We are unable to raise our voice against non implementation of DA merger and other demands. There is no use in scratching our heads over such issues which we cannot resist or stop. Employees Unions have their own agenda. They will make some noise when the govt announces some reforms then keep quiet.  Mergers  of Banks are policies of the Central Government and they do not wait for approval of Unions. Customers do not have any problem if Bank A becomes Bank B. They want good service that is all. As of now these are just rumours,

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAJeVgxEy0SM%2BnodpMo9MqWj7a6Fs-fveEV%2BH-HF1%3D6Lg%2BZ3Rew%40mail.gmail.com.

[Sureshbhat M]

Are the staff of merged entities to SBI will be treated equally to existing SBI staff reg Salary, scale, other allowances etc ?

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAM%3DeiW2Oi36DczH6%3DqYjqETXUMNhDz1MhWw2F6T-nWorC1aN_Q%40mail.gmail.com.

[Vvns Varaprasadrao]

A retiree who is working as General Secretary to working staff Union can guide all suitably in the matter.

Regards.

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAJjVXgwYy%3D0KmND5sTKLg1O0e2Cwi0EjfzyO3pwQwVKVd9xZYA%40mail.gmail.com.