Government plans to merge these banks into larger ones
The government is considering proposals to merge Indian Overseas Bank, Central Bank of India, Bank of India, and Bank of Maharashtra into larger banks like PNB, Bank of Baroda, and SBI, with discussions expected to take place by FY27.
This follows an earlier round that cut the number of public sector banks from 27 to 12.
If these proposals are implemented, there could potentially be fewer than 10 major government banks in India in the coming years.
What will be the impact of this merger?
These mergers are about making Indian banks stronger and more competitive globally—right now, SBI ranks only 43rd worldwide despite its size.
The goal is to boost lending power for things like infrastructure and make banking smoother for everyone.
You'll still have access to a wide network of branches and ATMs, but with bigger banks behind them.
It's a move aimed at helping the economy grow—and making sure Indian banks can keep up on the world stage.