New Delhi: 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, citing sources.
PNB could start the process of taking control of the banks in the next three months, Reuters reported citing sources. The Indian government is seeking to consolidate the nation's debt-burdened state banking sector.
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.
Last year, the government engineered state-owned Life Insurance Corp's takeover of IDBI Bank, a step to ensure that the bank with one of the highest levels of bad loans on its books is well capitalised.
Back in 2017, State Bank of India (SBI) had amalgamated its five associate banks and Bharatiya Mahila Bank.
PNB shares fell as much as 4%. Its shares ended down 2.55% at ₹86.10 on NSE on Tuesday.
Allahabad Bank fell 2.6% to close at ₹45.15 a share, while Oriental Bank of Commerce ended down nearly 1% at ₹95.20 per share.