Union Bank and Bank of India Merger: A New Banking Giant on the Horizon?

• Union Bank of India and Bank of India are reportedly set to merge, with groundwork for operational integration already underway.
• The central government aims to reduce the number of public sector banks to 4-5, creating world-class entities through mergers.
• The merged entity is projected to become the second-largest public sector bank after SBI, with assets reaching INR 25.4 lakh crore by FY2025.
• Despite potential technical challenges due to differing software and digital architecture, the merger is expected to enhance lending capacity and financial stability.
• Customers may experience changes in IFSC codes, chequebooks, and branch locations, while employee adjustments will also be managed.

Why It Matters: Union Bank and Bank of India are merging to form a new banking giant, aiming for a stronger, more efficient public sector.