Major Bank Merger Looms: Union Bank & Bank of India to Create India's Second Largest PSU Bank

• Government is preparing to merge Union Bank of India and Bank of India to strengthen the banking sector.
• If merged, the new entity would become India's second-largest public sector bank after SBI, with assets of ₹25.67 lakh crore.
• The move aims to increase efficiency, reduce overlap, save costs, and provide better customer service.
• Between 2017 and 2020, the government merged 10 public sector banks into four larger banks, reducing the total from 27 to 12.
• Other banks like Indian Overseas Bank, Indian Bank, Punjab & Sind Bank, and Bank of Maharashtra are also under consideration for merger or privatization.

Why It Matters: Potential merger of Union Bank & Bank of India could reshape India's public sector banking landscape.