PSBs on merger track may get recapitalisation allocation in Budget 2020

With a little over three months left to complete the process of consolidation of public sector banks (PSBs), as announced by the finance minister in September, the 10 banks involved in the mergers are understood to be in advanced stages of due diligence.  

Punjab National Bank (PNB), Union Bank of India, Canara Bank, and Indian Bank — known as anchor banks — will acquire six smaller nationalised banks (see chart). Given the amount of the additional provisioning burden that the merger process may entail, it is expected that the upcoming Union Budget may provide for another round of recapitalisation, banking