Are Bank of Maharashtra, BoI, Union Bank, UCO Bank on govt’s merger list?
Bank of Maharashtra, and Union Bank and UCO Bank. According to a report by Reuters citing the document, a parliamentary panel will hold discussions with the four government-owned banks early next year under banking laws which among other things govern mergers and acquisitions. The informal discussions will be held with representatives of UCO Bank and Union Bank of India on January 2, 2024, and between Bank of Maharashtra and Bank of India on January 6, 2024 in Mumbai and Goa.
Citing two finance ministry sources, the Reuters report said that no proposal to merge the public sector banks is being considered by the government and that the discussions were part of “routine exercise". The document is a government PDF issued on November 16 in the name of Ramesh Yadav, under secretary, Government of India. The subject of the document says “Study Visit programme of the Committee on Subordinate Legislation, Lok Sabha to Mumbai and Goa from 2 to 6 January 2024".
It is issued to the governor of the Reserve Bank of India (RBI), chairmans of LIC (Life Insurance Corporation), IRDAI (Insurance Regulatory and Development Authority of India), and NABARD, along with MD and CEOs of the four mentioned banks. It is also addressed to CMDs of New India Assurance Company, United India Insurance Company, Oriental Insurance Company, National Insurance Company, and MD & CEO of SBI Life Insurance Company. In 2019, the government had announced the merger of 10 state-owned banks into four lenders.
In 2017, the cabinet had approved State Bank of India (SBI) acquiring five of its subsidiary banks. In March 2020, the government had given its nod to a “mega consolidation" of PSBs, effective April 1, 2020. This entailed merging the Oriental Bank of
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