MegaBank on the Horizon: Union Bank and Bank of India Merger Eyed Before Budget

• Union Bank of India and Bank of India are undergoing internal review for a potential merger, aiming for completion by year-end.
• The merger aligns with the government's strategy to consolidate public sector banks, targeting 4-5 large PSU banks from the current 12.
• Post-merger, the combined entity could become India's second-largest government bank with assets of 25.4 lakh crore rupees.
• It would rank as the third-largest bank overall after SBI and HDFC Bank, potentially surpassing Bank of Baroda, Canara Bank, and PNB in market cap.
• Key challenges include integrating diverse technology systems, harmonizing operations, and managing employee coordination.

Why It Matters: Union Bank and Bank of India are exploring a merger to create a 'MegaBank', transforming India's banking landscape.