{"id":19194,"date":"2025-10-19T19:04:50","date_gmt":"2025-10-19T19:04:50","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/10\/19\/mega-bank-merger-these-4-public-sector-banks-may-cease-to-exist-banking-and-finance-news\/"},"modified":"2025-10-19T19:04:50","modified_gmt":"2025-10-19T19:04:50","slug":"mega-bank-merger-these-4-public-sector-banks-may-cease-to-exist-banking-and-finance-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/10\/19\/mega-bank-merger-these-4-public-sector-banks-may-cease-to-exist-banking-and-finance-news\/","title":{"rendered":"Mega Bank Merger: These 4 Public Sector Banks May Cease To Exist | Banking and Finance News"},"content":{"rendered":"<p><br \/>\n<\/p>\n<div id=\"story-9641620\">\n<p><span class=\"jsx-395e0e0beb19cb6e jsx-4143937483\">Last Updated:<\/span><time class=\"jsx-395e0e0beb19cb6e jsx-4143937483\">October 17, 2025, 08:48 IST<\/time><\/p>\n<h2 id=\"asubttl-9641620\" class=\"jsx-c9f81425ec968c48 jsx-1094391408 asubttl-schema\">NITI Aayog reportedly proposed retaining only major PSBs like SBI, PNB, BoB, and Canara Bank, while merging or privatising smaller ones to enhance efficiency and competitiveness<\/h2>\n<div class=\"jsx-cc1b15cf85effb8b artsharwrp\"><a href=\"https:\/\/news18.co\/gnps-en-btn\" target=\"_blank\" class=\"jsx-91f4da8d48c13a79 gglebtn bgblu\"\/><\/p>\n<div id=\"artshare\" class=\"jsx-cc1b15cf85effb8b artshare\">\n<div class=\"jsx-cc1b15cf85effb8b stickdiv\">\n<div class=\"jsx-cc1b15cf85effb8b deskwrapstkdiv\">\n<div class=\"jsx-cc1b15cf85effb8b fontchange\"><img decoding=\"async\" src=\"https:\/\/images.news18.com\/dlxczavtqcctuei\/news18\/static\/images\/english\/font.svg\" height=\"30px\" width=\"30px\" alt=\"font\" title=\"font\" class=\"jsx-cc1b15cf85effb8b lazyload\"\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<figure class=\"jsx-c9f81425ec968c48 jsx-1094391408 amimg\"><img decoding=\"async\" alt=\"Discussions and consultations are expected to take place in FY27. (Representative\/PTI)\" title=\"Discussions and consultations are expected to take place in FY27. (Representative\/PTI)\" src=\"https:\/\/images.news18.com\/ibnlive\/uploads\/2021\/07\/1627283897_news18_logo-1200x800.jpg?impolicy=website&amp;width=400&amp;height=225\" loading=\"eager\" fetchpriority=\"high\" class=\"jsx-c9f81425ec968c48 jsx-1094391408\"\/><\/p>\n<p>Discussions and consultations are expected to take place in FY27. (Representative\/PTI)<\/p>\n<\/figure>\n<p id=\"0\" class=\"story_para_0\">In a move that could reshape India\u2019s banking landscape, the Union Government is reportedly planning to merge smaller state-owned banks with larger ones. According to a <em>Moneycontrol<\/em> report, the consolidation aims to create stronger, more efficient institutions capable of driving the next phase of credit growth and financial reforms.<\/p>\n<h2>Banks To Be Merged<\/h2>\n<ul class=\"listOncontentArticleUL\">\n<li>Indian Overseas Bank (IOB)<\/li>\n<li>Central Bank of India (CBI)<\/li>\n<li>Bank of India (BOI)<\/li>\n<li>Bank of Maharashtra (BoM)<\/li>\n<\/ul>\n<h2>Banks They Will Merge Into<\/h2>\n<ul class=\"listOncontentArticleUL\">\n<li>Punjab National Bank (PNB)<\/li>\n<li>Bank of Baroda (BoB)<\/li>\n<li>State Bank of India (SBI)<\/li>\n<\/ul>\n<p id=\"5\" class=\"story_para_5\">An internal government document detailing the merger plan, named \u2018Record of Discussion,\u2019 will first be reviewed by senior officials at the cabinet level and then by the Prime Minister\u2019s Office (PMO). Discussions and consultations are expected to take place in FY27, with a roadmap to be finalised within the same year. The Ministry of Finance has not yet commented on this proposal.<\/p>\n<h2>Public Sector Banks Consolidation Drive<\/h2>\n<p id=\"7\" class=\"story_para_7\">This decision is part of the government\u2019s ongoing efforts to strengthen public sector banks. Between 2017 and 2020, the central government merged 10 state-owned banks into four large banks, reducing the total number of PSBs from 27 in 2017 to 12.<\/p>\n<p id=\"8\" class=\"story_para_8\">For example, Oriental Bank of Commerce and United Bank of India merged with Punjab National Bank. Similarly, Syndicate Bank merged with Canara Bank. Five associate banks and Bharatiya Mahila Bank merged with SBI. The associate banks included State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Mysore, State Bank of Patiala, and State Bank of Hyderabad.<\/p>\n<h2>Why Is The Government Still Merging Banks?<\/h2>\n<p id=\"10\" class=\"story_para_10\">According to reports, NITI Aayog suggested maintaining only a few large public sector banks like SBI, PNB, BoB, and Canara Bank, and either merging or privatising the rest. As part of this, it was decided to merge smaller PSBs like IOB and CBI.<\/p>\n<p id=\"11\" class=\"story_para_11\">Experts believe this plan is suitable for current conditions because fintech and private banks are rapidly expanding. To compete with them, public banks need to be very strong. The government believes that large, well-capitalised banks will be more efficient and competitive internationally.<\/p>\n<div class=\"jsx-c9f81425ec968c48 jsx-1094391408 artcta\"><a href=\"https:\/\/news18.co\/n18egpab\" target=\"_blank\" rel=\"noopener noreferrer\">Follow News18 on Google<\/a>. Join the fun, play <a href=\"https:\/\/www.news18.com\/games\/\">QIK games on News18<\/a>. Stay updated with all the latest business news, including <a href=\"https:\/\/www.news18.com\/business\/markets\/\">market trends<\/a>,\u00a0<a href=\"https:\/\/www.news18.com\/topics\/stocks-to-watch\/\">stock updates<\/a>,\u00a0<a href=\"https:\/\/www.news18.com\/business\/tax\/\">tax<\/a>, IPO,\u00a0<a href=\"https:\/\/www.news18.com\/business\/banking-finance\/\">banking finance<\/a>, real estate, savings and investments. To Get in-depth analysis, expert opinions, and real-time updates. Also <span data-olk-copy-source=\"MessageBody\">Download the\u00a0<a href=\"https:\/\/onelink.to\/eng-article-eop\">News18 App<\/a> to stay updated.<\/span><\/div>\n<div class=\"jsx-c9f81425ec968c48 jsx-1094391408 atbtlink fp\"><span>First Published:<\/span><\/p>\n<div class=\"rs\">\n<p>October 17, 2025, 08:48 IST<\/p>\n<\/div>\n<\/div>\n<div id=\"coral-wrap\" class=\"jsx-ba4d8f086a12294f \">\n<div class=\"jsx-ba4d8f086a12294f coral-cont\">\n<div class=\"jsx-ba4d8f086a12294f coltoptxt\">Disclaimer: Comments reflect users\u2019 views, not News18\u2019s. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our <a href=\"https:\/\/www.news18.com\/disclaimer\/\" class=\"jsx-ba4d8f086a12294f\">Terms of Use<\/a> and <a href=\"https:\/\/www.news18.com\/privacy_policy\/\" class=\"jsx-ba4d8f086a12294f\">Privacy Policy<\/a>.<\/div>\n<\/div>\n<\/div>\n<p><span class=\"jsx-c9f81425ec968c48 jsx-1094391408 rmbtn news18_read_more\">Read More<\/span><\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.news18.com\/business\/banking-finance\/mega-bank-merger-these-4-public-sector-banks-may-cease-to-exist-ws-dkl-9641620.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Last Updated:October 17, 2025, 08:48 IST NITI Aayog reportedly proposed retaining only major PSBs like SBI, PNB, BoB, and Canara Bank, while merging or privatising smaller ones to enhance efficiency and competitiveness Discussions and consultations are expected to take place in FY27. (Representative\/PTI) In a move that could reshape India\u2019s banking landscape, the Union Government&#8230;<\/p>\n","protected":false},"author":1,"featured_media":19195,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-19194","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/19194","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=19194"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/19194\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/19195"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=19194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=19194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=19194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}