The mergers and acquisitions (M&A) of banks in India have played a crucial role in strengthening the country’s financial system. These consolidations aim to create stronger, more stable, and globally competitive banking entities. Over the years, several public and private sector banks have merged to enhance operational efficiency, customer reach, and capital adequacy.
Understanding these mergers is essential for aspirants preparing for banking, SSC, and other government exams, as questions on recent bank mergers frequently appear in current affairs and financial awareness sections.
Below is a comprehensive list of important bank mergers in India, arranged chronologically, highlighting the acquiring bank, the acquired bank, and the year of acquisition.
List of Bank Mergers in India (1993–2025)
| Acquiring Bank | Acquired Bank(s) | Year of Acquisition |
| Indian Bank | Allahabad Bank | August 2019 |
| Union Bank of India | Andhra Bank and Corporation Bank | August 2019 |
| Canara Bank | Syndicate Bank | August 2019 |
| Punjab National Bank (PNB) | Oriental Bank of Commerce and United Bank of India | August 2019 |
| Bank of Baroda | Vijaya Bank and Dena Bank | April 2019 |
| State Bank of India (SBI) | Bharatiya Mahila Bank (BMB), State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Mysore (SBM), State Bank of Patiala (SBP), and State Bank of Travancore (SBT) | 2017 |
Recent Bank Mergers in India
- These mergers were part of the 2019 mega bank consolidation plan announced by the Government of India to strengthen the public sector banking system.
- After these mergers, India’s number of public sector banks reduced from 27 to 12.
- The State Bank of India merger in 2017 created one of the largest banks in the world by assets and customer base.
Other Significant Mergers (Private and Public Sector)
| Acquiring Bank | Acquired Bank | Year |
| Kotak Mahindra Bank | ING Vysya Bank | 2014 |
| ICICI Bank | Bank of Rajasthan | 2010 |
| HDFC Bank | Centurion Bank of Punjab | 2008 |
| Indian Overseas Bank | Bharat Overseas Bank | 2007 |
| Federal Bank | Ganesh Bank of Kurundwad | 2006 |
| IDBI Bank (Industrial Development Bank of India) | United Western Bank | 2006 |
| Centurion Bank of Punjab | Lord Krishna Bank | 2006 |
| ICICI Bank | Sangli Bank | 2007 |
| Bank of Punjab | Centurion Bank | 2005 |
| Bank of Baroda | South Gujarat Local Area Bank | 2004 |
| Oriental Bank of Commerce (OBC) | Global Trust Bank | 2004 |
| Punjab National Bank (PNB) | Nedungadi Bank Ltd | 2003 |
| ICICI Bank | ICICI Ltd | 2002 |
| Bank of Baroda | Banaras State Ltd Bank | 2002 |
| ICICI Bank | Bank of Madura | 2001 |
| HDFC Bank Ltd | Times Bank Ltd | 2000 |
| Bank of Baroda | Bareilly Co-op Ltd | 1999 |
| Union Bank of India | Sikkim Bank Ltd | 1999 |
| Oriental Bank of Commerce | Bari Doab Bank Ltd | 1999 |
| Oriental Bank of Commerce | Punjab Co-op Ltd | 1997 |
| State Bank of India (SBI) | Kashinath State Bank | 1996 |
| Bank of India | Bank of Karad Ltd | 1995 |
| Punjab National Bank (PNB) | New Bank of India | 1993 |
Objective of Bank Mergers
- Strengthening financial institutions: Mergers help banks achieve economies of scale, making them more capable of handling large-scale operations.
- Reducing NPAs (Non-Performing Assets): Consolidation enables better management of bad loans.
- Enhancing customer service: Larger banks can provide more comprehensive digital and financial services.
- Global competitiveness: Mergers aim to make Indian banks globally competitive and resilient against financial shocks.
- Operational efficiency: Unified systems reduce duplication and improve governance.
Impact of Bank Mergers
- Improved capital base and credit availability for large infrastructure projects.
- Better technology integration leading to efficient service delivery.
- Greater risk management capabilities through diversification.
- Reduction in overlapping branches, improving cost-efficiency.
- Short-term challenges such as staff integration, IT migration, and cultural alignment.
PSU Bank Merger
Public Sector Bank mergers in India were implemented by the government to strengthen the banking system, improve efficiency, and create globally competitive banks. Through this consolidation, several smaller PSU banks were merged with larger anchor banks to reduce operational costs, improve capital strength, and enhance credit capacity. Major mergers included the amalgamation of Punjab National Bank with Oriental Bank of Commerce and United Bank of India, Canara Bank with Syndicate Bank, Union Bank with Andhra Bank and Corporation Bank, and Indian Bank with Allahabad Bank, reducing the total number of public sector banks from 27 to 12. These mergers aimed to create stronger, technology-driven banks capable of supporting large-scale lending, improving customer service, and promoting financial stability in the Indian economy.