Consolidation of Public Sector Banks.

  • The Government of India in August 2019 announced the merger of 10 public sector banks into 4 major public sector banks.
  • The Merger will be affected from 01st April, 2020.
  • Post Merger, the number of public sector banks will be reduced to 12 from 27.
  • These 12  Public  Sector  Banks  will  be  divided  into  two  Parts  (i.e.  6  Merged  Banks  and 6 Independent Bank) – details to follow in subsequent slides.
  • Earlier in April 2019, Vijaya Bank and Dena Bank was merged with Bank of Baroda.


Customers of which bank are likely to be Impacted and How?

 Account Number/ Customer ID likely to Change:

  • Your are likely to get new Customer ID/ Account number.
  • Make sure that your Particulars like Email ID, Contact Number and Address correctly available with bank.
  • Your all accounts will be tagged to a single customer ID.
  • Example: Suppose you have one account with Oriental Bank of Commerce and one in United Bank of India. Since Both the Banks are merged with Punjab National Bank, your both account will get 1 Customer ID.

Re- Submission of account details for Auto- Credits/ Debits:                                                                           

  • If your Bank is merged with another Bank, then you will get new account number and IFSC Code.
  • If you would have given your old bank details for various financial transaction- like auto Credit of Salary, Dividend, Auto Debit of EMI, etc, then unless your account are seamlessly merged into the financial system of the Post Merged Bank, you would be required to submit the revised details for these purpose.
  • If your account details get changed, then you have to update these with Third Parties like Income Tax Department for Tax refund, Insurance Companies for Maturity Proceeds, Mutual Funds for Redemption Amount, etc

Borrowers: Deposit, lending rates to be decided by Merged Bank

  • There is a possibility that your Existing loan Rate may be changed by Merged Bank.  It is up to the Merged bank.
  • In April, 2019, when Vijaya Bank and Dena Bank is merged with Bank of Baroda, all loan of Vijaya Bank and Dena Bank are converted into ROI of Bank of There is no Change for Existing Customers of Bank of Baroda.
  • Before Merger the MCLR of Dena Bank was 8.80% and 8.75% of Vijaya Since at that time, Bank of Baroda was having MCLR of 8.65%, so all loan of Dena Bank and Vijaya Bank are converted using MCLR of Bank of Baroda.
  • There is also a possibility that at the instance merged Bank will not Change the Interest The will change the Interest rate at the time of next reset date or renewal date.

 Credit/ Debit Cards, Fixed Deposits, etc:

  • The Credit/ Debit Cards already issued by the merging bank may have to be exchanged for those of the merged entity at some stage.
  • Paperwork and keeping financial trail of fixed deposits made will increase a bit as these will be transferred into the merged bank.


  • Shareholders of all public listed banks involved in the merger will be impacted.
  • Shareholders of Amalgamating Company will get shares of Amalgamated Company at the Pre- Decided SWAP Ratio.


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