The government on Friday (August 30, 2019) announced the amalgamation of eight public sectors and making them in to three single entities.
As per the announcement, Oriental Bank of Commerce and United Bank of India will merge with Punjab National Bank.
Canara Bank and Syndicate Bank will become single entity with the merger.
Union Bank of India, Andhra Bank and Corporation Bank will be amalgamated into a single entity.
Indian Bank and Allahabad Bank will become one entity.
After the merger process only 12 PSBs will be left in India from the 27 earlier. Punjab National Bank will become the second largest banking network in India with 11,431 branches.
The Finance Minister Nirmala Raghavan said that Board committee of Nationalised banks in post amalgamation scenario shall approve performance of GM and above (including MD) to make management accountable to Board. The post consolidation Boards are given flexibility to introduce CGM level as per business requirements. Boards may recruit Chief Risk Officer from the market, at market-linked compensation to attract best available talent. Further the Board must implement a system of ‘Individual Development Plans’ for all senior executive positions for succession planning. Boards are authorized to give flexibility to prescribe residual service of two years for appointment of GM and above.
