The Indian government’s ongoing banking sector consolidation push appears to be advancing with preparations to merge Union Bank of India and Bank of India into a single large public sector bank. Sources familiar with the discussions say due diligence and internal alignment work is underway, with some officials suggesting the deal could be finalised by the end of this calendar year, 2026. Creating a Larger Lender If completed, the merger would combine the operations, assets and networks of two long-established state-run banks. The new entity would rank among the largest public sector banks (PSBs) in India, expanding its balance sheet significantly and increasing its footprint across urban and rural markets. Analysts note that such consolidation aligns with earlier merger rounds that reduced the number of standalone PSBs while enhancing scale. With combined assets estimated at around ₹25.4 lakh crore in the financial year 2024–25, the merged bank would likely become the second-largest public sector lender after State Bank of India and one of the biggest banks overall by size and reach. Why the Merger Is Being Considered Bank consolidation has long been part of the government’s drive to strengthen financial stability, improve efficiency and reduce operational duplication among state-run lenders.… Read MoreBusiness Archives – Trak.in – Indian Business of Tech, Mobile & Startups
