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PNB's board to meet soon on merger with Oriental Bank, United Bank

File photo. Photograph:( Zee News Network )

ANI New Delhi, India Aug 31, 2019, 08.02 PM (IST)

Punjab National Bank (PNB) will soon hold a board meeting to consider its amalgamation with Oriental Bank of Commerce and United Bank of India.

The bank has received a communication from the Ministry of Finance that the alternative mechanism after consultation with Reserve Bank of India (RBI) has decided that Punjab National Bank, Oriental Bank and United Bank may consider amalgamation, it said in a regulatory filing on Saturday.

"Accordingly, a meeting of the board of directors to consider the amalgamation will be convened by the bank shortly," PNB said.

Meanwhile, Corporation Bank too said a board meeting will be held to consider the merger with Union Bank of India and Andhra Bank.

A day earlier, Finance Minister Nirmala Sitharaman announced four sets of mergers to create GenNext banks.

Punjab National Bank, Oriental Bank of Commerce and United Bank of India will combine to form the country's second-largest lender after State Bank of India.

Canara Bank and Syndicate Bank will merge, Union Bank of India will amalgamate with Andhra Bank and Corporation Bank while and Indian Bank will merge with Allahabad Bank.

"These big banks will have enhanced capacity to increase credit and bigger risk appetite, with a national presence and global reach," said Sitharaman. Nearly 88 per cent of all PSB business will be with these consolidated banks.