Monday , July 4 2022

PNB is likely to take control of OBC, Andhra Bank and Allahabad Bank: Report



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New Delhi: In further consolidating the banking industry in the public sector, the National Bank of Punjab (PNB) could take control of two or three small state banks that could include Oriental Trade Bank, Andhra Bank and Allahabad Bank, Reuters news agency, identifying sources.

PNB could start the management of the banks in the next three months, Reuters reported quoting sources. The Indian government is trying to consolidate the nation's banking sector that is stealing a burden.

Earlier this year, with the first ever three-way merger with Dena Bank and Vijaya Bank, Baroda Bank has now become the second largest public sector lender after State Bank of India with over 9,500 branches, 13,400 ATMs, and 85,000 employees.

The merger of Dena Bank and Vijaya Bank with Baroda Bank came into effect from April 1.

Last year, the government engineered the occupation of Life Insurance Corp owned by IDBI Bank, a step to ensure that the bank with one of the highest levels of bad loans on its books was capitalized well.

Back in 2017, State Bank of India (SBI) had combined its five associate banks and Bank Bharatiya Mahila.

PNB shares subsequently fell by 4% Reuters he reported the news. His shares ceased 2.55% down 86.10 on NSE on Tuesday.

Allahabad Bank fell 2.6% to close 45.15 share, while Oriental Trade Bank ended almost 1% in 95.20 per share.

The Indian government is trying to consolidate the nation's banking sector that is stealing a burden.

PNB refused to comment, while the other banks did not reply immediately from Reuters seeking further information.

India's finance ministry also refused to comment on the story.

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