The central government has taken a big decision regarding the banking sector.
By April 2026, six major banks in the country are expected to disappear as they are likely to merge with larger banks.
This move aims to strengthen India’s banking system and make it more competitive globally.
Why Is the Government Doing This?
The main reason behind this step is the government’s goal to create banks strong enough to enter the world’s top 100 banks list.
SBI has also shown interest in forming bigger banks within the country to increase market value and improve financial stability.
Which Banks Are on the List?
The six banks likely to be merged are:
Bank of India
Central Bank of India
Indian Overseas Bank
UCO Bank
Bank of Maharashtra
Punjab & Sind Bank
Reports suggest that all of these may be merged with bigger banks to create stronger financial institutions.
Branch Overlap Helps Reduce Costs
India has seen several large bank mergers since 1993.
Over the last thirty years, many smaller banks have joined bigger ones.
Merging overlapping branches helps cut costs, improves management, and allows banks to offer better services.
The Last Big Merger Happened in 2017
One of the biggest mergers took place in 2017, when SBI merged six of its associate banks.
These included:
State Bank of Hyderabad
State Bank of Patiala
State Bank of Bikaner and Jaipur
State Bank of Mysore
State Bank of Travancore
Bharatiya Mahila Bank
This merger made SBI one of the world’s largest banks in terms of branch network.
Most Mergers Happen in April
Between 2017 and 2020, most major bank mergers were completed in April.
Although the Finance Ministry has not officially announced which bank will merge with which larger bank in 2026, it is believed that the upcoming mergers will also take place in April.
