Which two banks have recently been merged with Punjab National Bank?

The correct answer is Oriental Bank of Commerce and United Bank of India.

Key Points

• Oriental Bank of Commerce and United Bank of India have been merged with Punjab National Bank.
• This merger came into effect on April 1, 2020, as part of the Indian government's banking sector reforms.
• The merger aimed at creating a stronger and globally competitive bank.
• Post-merger, Punjab National Bank has become the second-largest public sector bank in India, after State Bank of India.
• This consolidation is expected to bring about better economies of scale, improved operational efficiency, and enhanced customer service.

Additional Information

• Banking Sector Reforms in India
  • In 2019, the Indian government announced the consolidation of ten public sector banks into four larger entities.
  • The objective was to create stronger and more resilient banks to meet the credit needs of a growing economy.
  • Other mergers included Canara Bank with Syndicate Bank, Union Bank of India with Andhra Bank and Corporation Bank, and Indian Bank with Allahabad Bank.
  • This consolidation aims to improve the efficiency and profitability of the public sector banks.
• Benefits of Bank Mergers
  • Mergers help in pooling resources and expanding the reach and capabilities of the banks.
  • The combined entity benefits from economies of scale, improved asset quality, and stronger balance sheets.
  • It leads to better management of risks and enhances the ability to provide a wider range of products and services to customers.
  • Employees also benefit from better career prospects and opportunities for growth within a larger organization.
• Challenges of Bank Mergers
  • Integration of different banking cultures and systems can be challenging and time-consuming.
  • There could be potential job redundancies and relocation issues for employees.
  • Maintaining customer service quality during the transition period is crucial to retain customer confidence.
  • Regulatory and compliance issues need to be managed carefully to avoid any legal or operational disruptions.