6 banks Cease to Exist from April 1, 2020 after Merger of 10 PSU Banks

The government of India had announced in August 2019  that it plans to merge 10 public sector banks into four. The idea was to bring down the number of state-owned banks from 21 to 12. According to the Finance Minister Sitharaman, this consolidation is going to help in better management of capital.

The merger of the public sector banks, that would come into effect from April 1, 2020 was approved by Union Cabinet in March 2020.

From April 1, six public sector banks will cease to exist. The ten government run banks will merge to form 4 banks.

Post merger all the branches of the merging banks will operate as branches of the parent bank in which they are merging.

If your holding an account in Oriental Bank of Commerce, then automatically after the merger of OBC you will be treated as a customer of PNB.

Similarly, account holders of Corporation Bank and Indian Bank now become customers of Allahabad Bank.

Which are the 4 Bank after the merger

• Punjab National Bank will take over Oriental Bank of Commerce and United Bank.
• Canara Bank will take over Syndicate Bank.
• Union Bank of India will take over Andhra Bank
• Allahabad Bank will take over Corporation Bank and Indian Bank

This is one of the biggest consolidations of public sector banks by the government after 2017, when SBI took over five of its associates and Bharatiya Mahila Bank.
In 2019 in yet another consolidation Bank of Baroda took over Vijaya Bank and Dena Bank.

Why these Bank Mergers

All these consolidation measures are part of the government’s highly aggressive plan of making India a $ 5 Trillion Economy by 2025. The government is committed to strengthening the financial system of the country.


The government has also assured the bank employees that due to the mergers there will be no job loss.