head of its merger with the United Bank of India (UBI) and the Oriental Bank of Commerce (OBC) from April 1, Punjab National Bank (PNB) today unveiled a new logo which bears the signages of all the three PSU banks. From the next financial year, PNB will become the second largest lender in India after the State Bank of India (SBI). The Reserve Bank of India (RBI) has already issued a statement that the merger will take place as scheduled on April 1.
There were concerns that the 21-day nationwide lockdown might impact the mega merge plan in which 10 state-owned banks will be merged into four bigger and stronger banks. OBC and UBI are the transferor banks while PNB is the transferee in this amalgamation process.
The amalgamation of #OrientalBankofCommerce and #UnitedBankofIndia into #PunjabNationalBank marks a historic moment in the annals of Indian Economy & Banking. On this occasion, we thank you for your continued patronage & promise to keep you posted with developments. pic.twitter.com/4ffiedDPjT
— Punjab National Bank (@pnbindia) March 21, 2020
The boards of UBI and OBC will cease to exist from April 1, 2020. According to the swap ratio, 1,150 equity shares of PNB are to be exchanged for every 1,000 shares of Oriental Bank of Commerce. As many as 121 equity shares of PNB are to be swapped for every 1,000 shares of the Kolkata-headquartered bank. PNB also appealed to its customers to stay indoors due to the coronavirus outbreak and access its services through net banking and PNBONE app.
The logo is very important for creating an identity of the new lender and discussions on this aspect have been taken place at the highest level of the three state-run banks. The official also said the 34-odd committees, formed by the three banks for standardisation and harmonisation of procedures, have already submitted their reports to the respective boards of the lenders.
SOME TWEETS :
Major Bank Reforms announced by Hon Fin Min, Smt @nsitharaman ji.
👉 PNB, OBC & Union Bank merged
👉Syndicate Bank merged with Canara
👉UBI, Andhra, Corp Banks merged
👉 Heralds consolidation of Best practices of banks to enhance overall performance@narendramodi@AmitShah pic.twitter.com/kTFBV2Wp53
— Gayatri বৰপাত্ৰগোহাঁই 🇮🇳 🐾🌱 (@GayatriBGohain) August 30, 2019
Punjab National Bank will merge with the United Bank of India (UBI) and the Oriental Bank of Commerce (OBC) from April 1, Punjab National Bank (PNB) today unveiled a new logo which bears the signages of all the three PSU banks. @pnbindia @UnitedBankTweet pic.twitter.com/1j3fjayKqg
— Tezpur Buzz (@TezpurBuzz) March 30, 2020
— Ajay Kumar Nandy (@ajay_nandy) September 7, 2019
#PNB, which is the anchor bank for a scheduled merger with #UBI and #OBC, has said it does not see any erosion in asset quality after the merger, #process and #products will be chosen for the consolidated entity to offer a win-win situation for the combined #staff and #customers. pic.twitter.com/57458EAAJb
— IANS Tweets (@ians_india) September 22, 2019
PNB new logo soon: PSU bank to get new identity after merger with UBI, OBC – The Financial Express https://t.co/cAkNTUd5FI
— K K R (@ramankk92) February 8, 2020
MORE ABOUT THE MERGE
In its bid to create “NextGen banks”, the finance ministry has decided to merge 10 public sector banks into four. The merger of United Bank of India (UBI) and Oriental Bank of Commerce (OBC) with Punjab National Bank (PNB) will give birth to India’s second largest public sector bank after the State Bank of India (SBI). The PNB merger, which will make the bank bigger than Bank of Baroda (BoB), will come into effect from April 1 next year, according to a recent PTI report. Punjab National Bank (PNB) however, said there is no proposal to change the name of the bank following the merger of two other public sector lenders Oriental Bank of Commerce (OBC) and United Bank of India (UBI) with itself.
What are the objectives of the amalgamation w.e.f. 1 April 2020?
The announcement of amalgamation by Honorable Finance Minister was made with the following objectives:
Unlocking potential through consolidation- creation of Next Gen Banks , Repositioning PSBs with scale for building of USD 5 Trillion Economy, Big banks with enhanced capacity to increase credit, Creation of a bank with a strong national presence and international reach , Operational efficiency gains to reduce cost of lending, Enhanced risk appetite Wider offerings with enhanced customization, Better ability to raise resources from market.
How big will be the amalgamated bank?
The amalgamated bank will be the second largest public sector bank in the country having a business of Rs. 18 lakh crores (approx.), 11,000 branches (approx.) and a workforce of over 1 lakh.
How will this amalgamation impact me as a customer?
The customer will be impacted in a positive manner as under: Will be associated with a larger Bank, having a, widespread pan-India network and better capital base. Access to a larger number of branches and ATM, network and next generation banking technology. Access to a wider array of products, credit facilities and, best of banking services.
Are Oriental Bank of Commerce and United Bank of India getting closed?
No. Both these banks are being amalgamated into Punjab National Bank, with the name of the amalgamated bank being Punjab National Bank.
CHALLENGES DUE TO COVID-19
The functioning of the amalgamated entity of three PSBs — Punjab National Bank, Oriental Bank of Commerce and United Bank of India that comes into being on April 1– will be a “big challenge” in the wake of the ongoing 21-day nationwide lockdown, an official said on Friday. The merger of UBI and OBC into PNB will lead to the creation of the country’s second largest lender after State Bank of India, the official said. “Under the given conditions, the effective functioning of the merged entity will be a big challenge. The government has not given any direction so far in this regard,” the UBI official said. The legal process of the merger has been completed, he said. OBC and UBI are the transferor banks while PNB is the transferee in this amalgamation process. The boards of UBI and OBC will cease to exist from April 1, 2020, the official said. “The effective functioning of the merged entity will be seriously impacted due to the outbreak of COVID-19, which has put all plans into a tailspin,” the official said. According to the swap ratio, 1,150 equity shares of PNB are to be exchanged for every 1,000 shares of Oriental Bank of Commerce. As many as 121 equity shares of PNB are to be swapped for every 1,000 shares of the Kolkata-headquartered bank.