Mega Bank Merger Looms: Union Bank & Bank of India May Unite, Creating India's 2nd Largest PSB

• Government plans to merge Union Bank of India and Bank of India to strengthen banks and enhance efficiency.
• The merged entity would become India's second-largest public sector bank after SBI, with assets of approximately ₹25.67 lakh crore.
• This move aims to surpass Bank of Baroda's asset base and increase competition in the banking sector.
• Between 2017 and 2020, the government previously merged 10 public sector banks into 4 larger banks, reducing the total from 27 to 12.
• The proposal is currently under discussion, with no official announcement yet, but could create banking history.

Why It Matters: Potential merger of Union Bank of India and Bank of India could create India's second-largest public sector bank.