Bank Mergers — Set 1

Correct Answer: D. New Bank of India

• **New Bank of India** = the only nationalised bank that failed financially and was forcibly merged into Punjab National Bank in 1993 to protect depositors. • **1993** — this was the first-ever merger between two nationalised (government-owned) banks in India, triggered by New Bank of India's mounting losses and insolvency. • The merger set an early precedent that even government banks could be wound into larger ones rather than bailed out indefinitely. • 💡 Oriental Bank of Commerce is wrong — it was merged into PNB in April 2020 (a different, much later merger); Punjab and Sind Bank is wrong — it remains an independent PSB to this day; United Bank of India is wrong — it was merged into PNB in April 2020 alongside OBC.

Correct Answer: B. Punjab National Bank

• **Punjab National Bank** = anchor bank for the three-way merger with Oriental Bank of Commerce (OBC) and United Bank of India, effective April 1, 2020. • **2nd largest PSB** — after this merger, PNB became India's second largest public sector bank (after SBI) with a combined business of over ₹17 lakh crore. • This was part of the government's mega-consolidation that reduced PSBs from 27 (2017) to 12, aiming for globally competitive bank sizes. • 💡 Union Bank of India is wrong — it was the anchor for Andhra Bank + Corporation Bank; Canara Bank is wrong — it absorbed Syndicate Bank; Bank of Baroda is wrong — it was the anchor for the 2019 Dena + Vijaya merger.

Correct Answer: D. Bank of Baroda

• **Bank of Baroda** = anchor bank for the first-ever three-way merger of public sector banks in India, effective April 1, 2019. • **3rd largest PSB** — post-merger Bank of Baroda became India's third largest public sector bank with a total business exceeding ₹14 lakh crore. • Shareholders of Dena Bank and Vijaya Bank received Bank of Baroda shares in fixed swap ratios; this merger was a pilot before the bigger 2020 round. • 💡 Bank of India is wrong — it remains a standalone PSB; State Bank of India is wrong — it merged its 5 associate banks in 2017, not Dena or Vijaya; Indian Bank is wrong — it absorbed Allahabad Bank in April 2020.

Correct Answer: C. Canara Bank

• **Canara Bank** = anchor bank for the merger with Syndicate Bank, effective April 1, 2020, making it India's fourth largest public sector bank. • **South India roots** — both Canara Bank (Mangalore) and Syndicate Bank (Manipal) are Karnataka-based banks; the merger combined two institutions with deep South Indian networks. • Post-merger Canara Bank had over 10,000 branches and a customer base of over 15 crore, significantly expanding its rural footprint. • 💡 Indian Bank is wrong — it absorbed Allahabad Bank in 2020; Central Bank of India is wrong — it remained a standalone PSB; Union Bank of India is wrong — it merged with Andhra Bank and Corporation Bank.

Correct Answer: C. Union Bank of India

• **Union Bank of India** = anchor bank that absorbed both Andhra Bank and Corporation Bank in the April 1, 2020 mega-merger round. • **Enlarged entity** — the three-way merger created a bank with over ₹14.6 lakh crore in total business and a strong presence across South and West India. • This consolidation was designed to eliminate overlapping branch networks and reduce the government's recurring recapitalisation burden. • 💡 Indian Overseas Bank is wrong — it remained a standalone PSB; Bank of Baroda is wrong — it was anchor for the 2019 Dena+Vijaya merger; Canara Bank is wrong — it absorbed Syndicate Bank in 2020.

Correct Answer: A. Indian Bank

• **Indian Bank** = anchor bank that absorbed Allahabad Bank (founded 1865, one of India's oldest joint stock banks) on April 1, 2020. • **Pan-India reach** — Indian Bank, headquartered in Chennai with a South India base, gained significant North and East India presence through Allahabad Bank's legacy network. • Post-merger Indian Bank became the 7th largest PSB with total business of about ₹8.07 lakh crore. • 💡 Indian Overseas Bank is wrong — it is a separate PSB that was not involved in 2020 mergers; UCO Bank is wrong — it also remained standalone; Punjab National Bank is wrong — its 2020 merger was with OBC and United Bank, not Allahabad.

Correct Answer: A. 2017

• **2017** = on April 1, 2017, all five SBI associate banks — State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore — plus Bharatiya Mahila Bank merged into SBI. • **Global ranking jump** — this made SBI one of the top 50 global banks by assets; the merged entity had over 22,000 branches and ₹26 lakh crore in total business. • The merger eliminated duplicate administrative costs and allowed uniform product offerings across the SBI group network. • 💡 2015 is wrong — that year saw the ING Vysya–Kotak Mahindra merger, not the SBI associates; 2016 is wrong — the Cabinet approved the merger in 2016 but it took effect April 1, 2017; 2018 is wrong — there was no major SBI associate merger that year.

Correct Answer: D. State Bank of Saurashtra

• **State Bank of Saurashtra** = the first SBI associate bank to be merged, completed in August 2008, nearly a decade before the mass 2017 merger. • **Phased approach** — the government tested associate-bank integration with Saurashtra (2008) and Indore (2010) before doing all remaining five at once in 2017. • State Bank of Saurashtra was headquartered in Rajkot, Gujarat, and had a strong rural Gujarat network that was absorbed into SBI. • 💡 State Bank of Bikaner and Jaipur is wrong — it merged in 2017; State Bank of Indore is wrong — it was second, merged in 2010; State Bank of Hyderabad is wrong — it merged in 2017 along with the other three.

Correct Answer: D. State Bank of India

• **State Bank of India** = Bharatiya Mahila Bank, India's first all-women public sector bank (launched November 2013), was merged into SBI on April 1, 2017. • **Scale of reach** — rather than operating as a small standalone bank, BMB's women-focused products and schemes were made accessible through SBI's 22,000+ branches nationwide. • BMB was promoted by the UPA government in 2013; the NDA government decided that SBI's vast network would serve women customers far better than a separate niche bank. • 💡 Punjab National Bank is wrong — PNB was not involved in any 2017 merger; Bank of Baroda is wrong — its major merger was in 2019 (Dena+Vijaya); ICICI Bank is wrong — it is a private bank and had no role in BMB.

Correct Answer: D. Oriental Bank of Commerce

• **Oriental Bank of Commerce** = acquired the crisis-hit Global Trust Bank (GTB) in August 2004 after GTB's net worth was completely wiped out by bad loans and stock-market exposure. • **RBI-forced rescue** — the RBI directed this merger under Section 45 of the Banking Regulation Act to protect GTB's depositors; OBC was chosen as the acquirer due to its financial health. • GTB had suffered massive losses from its exposure to Ketan Parekh-linked stocks during the 2001 stock-market scam — a landmark case of RBI crisis intervention. • 💡 Bank of India is wrong — it was not involved in this merger; IDBI Bank is wrong — IDBI acquired United Western Bank in 2006, not GTB; Union Bank of India is wrong — it had no role in the GTB resolution.