As per the report by leading daily, after announcing the merger of 3 state-run banks namely BOB, Vijaya and Dena Bank, government by the end of this year is likely to announce another PSU Bank merger.
This time the three PSBs likely to be considered for merger include Punjab National Bank, Oriental Bank of Commerce (OBC) and Andhra Bank. "Government is analysing the merger of PNB, OBC and Andhra Bank, as it wants few large banks in the country", the report quoted a source as saying. The talks are currently underway with officials of banks to study the feasibility of the proposed amalgamation.
The report further suggested that the Union Cabinet is expected to give a go-ahead to the amalgamation scheme of -- BoB, Dena Bank and Vijaya Bank next week. The merger will follow strict timeline and all the necessary regulatory work is likely to be completed before the end of FY 2018-19, such that the new merged entity will operate from April 1, 2019.
This is after State Bank of India's merger with its associate banks as well as Bharatiya Mahila Bank that took place in the last fiscal year.