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 Andhra Bank board nod for merger with Union Bank
Economy

Andhra Bank board nod for merger with Union Bank

Agency News

Hyderabad, Sep 14 :  The Board of Directors of Andhra Bank has approved for the merger of Andhra Bank and Corporation Bank with Union Bank of India.
The decision was taken at the meeting of the Board of Directors held on Friday, the bank said in a regulatory filing.

The board “considered and given its in-principle approval for the amalgamation of Andhra Bank and Corporation Bank with Union Bank of India It may be mentioned that the Board of Directors of Union Bank of India on Monday last in its meeting at Delhi also approved merger of Andhra Bank and Corporation Bank with itself and given nod for a capital infusion of Rs 17,200 crore in the current financial year.

The government on August 30 unveiled a mega plan to merge 10 public sector banks into four.

Four new sets of mergers are: Punjab National Bank, Oriental Bank of Commerce and United Bank of India will combine to form the nation's second-largest lender; Canara Bank and Syndicate Bank will merge; Union Bank of India will amalgamate with Andhra Bank and Corporation Bank, and Indian Bank will merge with Allahabad Bank.

The exercise, seen together with the previous two rounds of bank consolidation, will bring down the number of nationalised PSBs to 12 from 27 in 2017.

With the merger approval given by Andhra Bank board, Andhra Pradesh now would be disappeared from the list of public sector banks after State Bank of Hyderabad which mergered with the State Bank of India two years back.(UNI)