PNB Gets In-Principal Approval from Govt for Union Bank of India's Acquisition

Punjab National Bank and Union Bank of India said they have received in-principal approval from the government for their amalgamation with other public sector banks.

"Bank has received a letter dated 13 November, 2019 from Department of Financial Services, Ministry of Finance vide which bank has been advised that Alternative Mechanism (AM), has accorded in-principle approval to proposed amalgamation of Oriental Bank of Commerce and United Bank of India into Punjab National Bank," Punjab National Bank said in a regulatory filing.

Punjab National Bank is the transferee bank and Oriental Bank of Commerce and United Bank of India as transferor banks.

In a separate filing, Union Bank of India said, "The bank has received a communication from Ministry of finance on 16 November, 2019 stating that the alternative mechanism has accorded in-principle approval to the proposed amalgamation of the Andhra Bank and Corporation Bank into Union Bank of India".

Union Bank of India is the transferee bank, and Andhra Bank and Corporation Bank are the transferor banks.

The government in August had announced four major mergers of public sector banks, bringing down their total number to 12 from 27 in 2017, a move aimed at making state-owned lenders global sized banks.