Four Public Sector Banks to Merge; Two to Be Nationalized

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New Delhi:  1st Nov 2025:  The government is set to implement a major merger in the public sector banking space. Plans are underway to merge Union Bank of India and Bank of India. Similarly, a merger is also planned between Indian Overseas Bank (IOB) and Indian Bank. Currently, India has 12 public sector banks.

After the merger of Union Bank and Bank of India, it will become the second-largest bank in the country.

Mergers:

Union Bank + Bank of India

Indian Overseas Bank + Indian Bank

Nationalization:

Punjab & Sind Bank

Bank of Maharashtra

At present, the second-largest public sector bank in the country is Bank of Baroda, which has assets worth ₹18.62 lakh crore. However, in terms of overall size, State Bank of India remains the largest.

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