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PNB could take control of OBC, Allahabad Bank

PNB could take control of OBC, Allahabad Bank

In further consolidation of the public sector banking industry, Punjab National Bank (PNB) could take control of two to three small state-run banks that could include Oriental Bank Of Commerce, Andhra Bank and Allahabad Bank, news agency Reuters reported.

Earlier this year, with the first ever three-way merger with Dena Bank and Vijaya Bank, Bank of Baroda has now become the second-largest public sector lender after State Bank of India with over 9,500 branches, 13,400 ATMs, and 85,000 employees.

The merger of Dena Bank and Vijaya Bank with Bank of Baroda became effective from April 1.

Back in 2017, State Bank of India (SBI) had amalgamated its five associate banks and Bharatiya Mahila Bank.

Why India needs few good banks?

Batting for consolidation in public sector banks, Chief Economic Advisor Krishnamurthy V Subramanian has said that having a few good banks is a good idea as they can compete and their quality can get enhanced to compete globally with the best in the world.

Chinese and European banks are very large, there are benefits they derive from economies of scale, which reduces their costs. American and Chinese banks benefit from global savings.

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