Round 2 of PSB merger soon

New Delhi, June 26: A merger may soon take place. The Union Government is planning for a merger of Public sector banks. The Government officials said that the following banks Vijaya and Dena Banks will be merged and the new bank will be merged with Canara bank.

Currently, Vijaya Bank and Dena Bank are small in size and operations and Canara Bank is 4th largest PSB. Talks are also being held to merge Indian Bank and Syndicate Bank and Indian Overseas Bank (IOB).

Currently there 21 PSB and the central government wants to reduce this figure to 10-12. Sources say that the talks of the merger of the above banks will take place in August.

Experts feel that if the merger takes place it would be a second round of merger of PSBs because earlier this year SBI has successfully merged its 5 subsidiary banks. Let's hope that merger of these banks take place so that PSB can function effectively.