Union Bank, Bank of India likely to merge: Report
The Indian government is looking at merging Union Bank of India and Bank of India, which would create the country's second-biggest public sector bank.
Together, they'd have assets worth about ₹25.67 trillion—more than Bank of Baroda and almost matching ICICI Bank.
This move follows Union Bank's earlier merger with Andhra Bank and Corporation Bank back in 2020.
Government aims to have fewer but stronger public banks
If this goes through, the government hopes that the new bank will be more efficient and better equipped to lend, helping meet growing credit needs across India.
The plan is part of a bigger push to have fewer but stronger public banks that can keep up with private players.
Since 2017, the number of state-run banks has dropped from 27 to just 12 by 2020 thanks to similar mergers—aimed at making banking more stable and improving access to loans, according to government sources.