6
Sunday
July 2025
5:52 AM IST
News Headlines
Home   | Main News   | Kerala  | National   | International  | Business   | Sports   | Entertainment   | Columns   | Offbeat   | Health   | About Deepika 
Business News
PSB stocks plunge up to 9.3 pc post merger announcement
 
New Delhi, Sep 3 (PTI) Public sector bank stocks, led by Corporation Bank and Punjab National Bank, tumbled up to 9.3 per cent on Tuesday after the government announced the merger of 10 state-run lenders into four.

Shares of Corporation Bank tanked 9.28 per cent to Rs 17.10, Punjab National Bank plunged 8.54 per cent to Rs 59.40, Canara Bank dropped 7.54 per cent to its one-year low of Rs 203.90.

Oriental Bank of Commerce cracked 7.34 per cent to Rs 68.10, Union Bank of India 6.79 per cent to its 52-week low of Rs 54.90, Allahabad Bank declined by 2.83 per cent to Rs 34.30 and United Bank 0.28 per cent to Rs 10.39 on the BSE.

However, Andhra Bank rose 5.31 per cent to Rs 20.80 and Syndicate Bank gained 3.55 per cent to Rs 33.50.

Equity markets were closed on Monday for 'Ganesh Chaturthi'.

Continuing its firefight against the deepening economic slowdown, the government on Friday unveiled a mega plan to merge 10 public sector banks into four with a view to creating fewer and stronger global-sized lenders with robust balance sheets that can be used to boost credit and spur growth.

The mergers announced on Friday, together with two set consolidations done last year, will reduce the number of public sector banks to 12 from 27 in 2017.

Oriental Bank of Commerce and United Bank will merge with Punjab National Bank to create the nation's second-largest lender behind State Bank of India. Also, Syndicate Bank will merge with Canara Bank while Andhra Bank and Corporation Bank would subsume into Union Bank of India, and Allahabad Bank will be amalgamated with Indian Bank.

According to Emkay Global, the merger of Canara and Syndicate could be relatively less disruptive in terms of integration... Being a strong mid-sized bank, Indian Bank was always susceptible to merger, but the merger with Allahabad Bank instead of IOB will be less painful.

However, it could be challenging due to cultural and geographical diversity with Allahabad Bank and its relatively weak asset quality.

PNB has been inherently weak and the merger could further aggravate and prolong the pain. Being a perennially capital-starved bank, Union Bank should benefit on the capital front due to the merger and has also been graced by the government with a healthy capital infusion, but that being said the merger will still be painful as a result of the geographic and cultural diversity of the merging entities.


AIBEA decides to go ahead with Nov 19 bank strike, discussions with IBA & Managements fail
Twitter very slow in India: Elon Musk
Amazon plans to lay off 10,000 people in coming days: NYT
Tripura to get tea auction centre
India indebted to former PM Manmohan Singh for economic reforms: Gadkari
Russia becomes India's top oil supplier in Oct
British PM Rishi Sunak committed to FTA with India, says Downing Street
India to press for collective efforts to deal with spillovers of actions by rich nations at G20: FM
Musk says Twitter verification being 'revamped'
Quality & Export define India and its Economy : Piyush Goyal
India Pak T20 match blockbuster creates new viewership record
Pakistan taken off from FATF's grey list; Myanmar in black list
Internet Freedom in India improves after 4 years of decline: Freedom House
India targeting Rs 35,000-crore exports of defence products by 2025: Rajnath
Rupee ends at 82.35 against USD
Sitharaman meets Japanese counterpart, discusses Indo-Pacific economic cooperation
Dhoni launches Droni, a Made-In-India camera drone
Ecosac launches biodegradable consumer products ‘Ecopath’
India, UK carrying out intensive discussions on FTA: MEA
World Bank slashes India's FY23 GDP growth forecast to 6.5 pc
KERALA NEWS
Top police official held in gang rape case
 Kozhikode: Police on Sunday arrested a Circle Inspector (station house officer) attached in Beypore  
Rain likely to occur many places in Kerala
Two killed as car plunged into well
Kerala CM greet Oommen Chandy on his 79th birthday
INTERNATIONAL NEWS
64 arrested in London on Charles III coronation day
 London: At least 64 people were arrested in UK's capital during the coronation of Charles III on May
Bangladesh police arrest six persons for selling fraud US visa stamps
Erdogan announces extension of grain deal by 120 days
Musk hints at new chief for Twitter
NATIONAL NEWS
Quo Vadis, Manipur?
 Imphal - Hardly any state in India has undergone in the last decade the chaos, lawlessness and suffe
27-year-old Hyderabad woman among victims of Texas mall shooting
One held in Swati Maliwal case: Delhi Police
PM to deliver opening address at 'No Money for Terror' event
Untitled Page
Rashtra Deepika LTD
Copyright @ 2021 , Rashtra Deepika Ltd.