MERGER OF 12 PSU BANKS INTO 3 MEGA BANKS (2025)

GROUP 1: SBI-LED MEGA BANK (NATIONWIDE DOMINANCE)

– STATE BANK OF INDIA (SBI)
– PUNJAB NATIONAL BANK (PNB)
– BANK OF BARODA (BOB)
– BANK OF INDIA (BOI)

*WHY*: COMBINES SBI’S SCALE (22,000 BRANCHES, ₹7 LAKH CR MARKET CAP) WITH STRONG NORTHERN/CENTRAL BANKS FOR 35,000 BRANCHES, ₹10 LAKH CR+ MARKET CAP, ₹60 LAKH CR ASSETS.

GROUP 2:

CANARA-LED SOUTH-EAST POWERHOUSE
– CANARA BANK
– UNION BANK OF INDIA
– INDIAN BANK
– INDIAN OVERSEAS BANK (IOB)

WHY*: MERGES SOUTHERN/EASTERN STRENGTHS (25,000 BRANCHES, ₹3 LAKH CR MARKET CAP, ₹30 LAKH CR ASSETS) FOR MSME, EXPORT, AND DIGITAL FOCUS.

GROUP 3 MID-TIER CONSOLIDATION BANK (EFFICIENCY)
– CENTRAL BANK OF INDIA
– UCO BANK
– BANK OF MAHARASHTRA
– PUNJAB & SIND BANK

*WHY*: CONSOLIDATES SMALLER PSBS (12,000 BRANCHES, ₹1.5 LAKH CR MARKET CAP, ₹15 LAKH CR ASSETS) FOR COST SYNERGY AND RURAL RECOVERY.

*RATIONALE*: CREATES GLOBALLY COMPETITIVE BANKS, ALIGNS WITH VIKSIT BHARAT 2047, MAXIMIZES GEOGRAPHICAL/OPERATIONAL SYNERGIES, AND REDUCES NPAs.