Syndicate Bank, Oriental Bank gain on Cabinet nod for merger of 10 PSBs

Shares of select public sector banks (PSBs) rose up to 15 per cent on the BSE in intra-day trade on Thursday after the government approved a scheme for the amalgamation of 10 state-owned banks into four.

Punjab National Bank (PNB), Oriental Bank of Commerce, and United Bank of India will combine to form the nation’s second-largest lender. Canara Bank will take over Syndicate Bank; Union Bank of India is planned to be amalgamated with Andhra Bank and Corporation Bank; and Indian Bank will subsume Allahabad Bank.

Effective from April 1, 2020, the balance sheets as well as stocks