Boards of Allahabad, Andhra Bank schedule meeting for merger proposals

New Delhi: Allahabad Bank on Wednesday said its board of directors will meet next week to consider its amalgamation with Indian Bank.

Also, Andhra Bank said its board will meet on September 13 to consider and approve amalgamation of it along with Corporation Bank into Union Bank of India.

“A meeting of the board of directors of the bank is scheduled to be held on Monday, 16th September, 2019, to consider amalgamation of Allahabad Bank with Indian Bank,” the Kolkata-headquartered bank said in a regulatory filing.

Finance Minister Nirmala Sitharaman last week had announced to merge 10 public sector banks (PSBs) into four lenders aimed at creating stronger and bigger banks.

In the biggest consolidation exercise in the banking space, the government on August 30 had announced four major mergers of PSBs, bringing down their total number to 12 from 19, a move aimed at making state-owned lenders the global-sized banks.

According to the consolidation exercise, United Bank of India and Oriental Bank of Commerce are to be merged with Punjab National Bank, making the proposed entity the second largest public sector bank (PSB).

Syndicate Bank is to be merged with Canara Bank.

The board of Punjab National Bank on September 5 gave its in-principle approval for amalgamation of Oriental Bank of Commerce and United Bank of India into itself.

PNB also said that, with this approval, it commences the amalgamation process, subject to all applicable approvals.

India has seen merger of six associate banks along with SBI and the Bharatiya Mahila Bank with the country’s largest lender in the financial year beginning April 2017.

Following next year, Bank of Baroda had merged Vijaya Bank and Dena Bank with itself.

Earlier this week on Monday, Union Bank of India had said its board of directors has approved merger of Andhra Bank and Corporation Bank with itself.

Stock of Allahabad Bank closed 1.21 per cent higher at Rs 33.50 on the BSE, Andhra Bank ended up 3.17 per cent at Rs 19.55 a piece.