After recent consolidation of Vijaya Bank and Dena Bank with Bank of Baroda, and merging State Bank of India with five of its subsidiaries and Bharatiya Mahila Bank, the government has gained confidence that continuing more such consolidations would lead to reduction in the current number of PSBs.
According to the sources, the government is planning to merge Oriental Bank of Commerce, Andhra Bank and Union Bank into Bank of India. The report further adds that there might be a merger between Bank of Maharashtra and Allahabad Bank.
Earlier, there were reports that the BJP-led NDA government is expected to speed up the banking consolidation, especially, in the public sector banks (PSBs). The main aim behind merging 2-3 banks together is to create few large banks. The recent merger of Bank of Baroda (BoB), Dena Bank and Vijaya Bank, which is effective from April this year, was the first off the block.