The Centre has announced that the Punjab National Bank (PNB), the UBI and the Oriental Bank of Commerce (OBC) will be merged to create the second-largest lender in the country after the State Bank of India (SBI).
Stakeholders, including customers and shareholders, of the United Bank of India (UBI) have expressed their disappointment over the government’s decision to not retain the identity of the age-old lender in the proposed merged entity, an official said on Thursday.
The Centre has announced that the Punjab National Bank (PNB), the UBI and the Oriental Bank of Commerce (OBC) will be merged to create the second-largest lender in the country after the State Bank of India (SBI). The amalgamated entity with PNB being designated as the anchor bank is expected to be operational on April 1.
“The UBI has a long association with the history of Bengal. It was called the Comilla Banking Corporation, established in 1914. Later, it became the United Bank of India Limited in 1950 with the amalgamation of three other banks with the lender. “During nationalisation of banks in 1969, it was renamed United Bank of India,” the UBI official told PTI. Since the UBI has long ties with Bengal, removing its identity from the merged entity has made the stakeholders disenchanted, the official said.
After the announcement of the merger in August 2019, UBI has been pressing for a new name and logo to retain its identity in the merged entity. “We have to accept the fait accompli. We can pursue up to a certain point,” the official said. The PNB recently said that there is no proposal to change the name of the bank after the merger. Asked about the status of the merger, the UBI official said, “We are awaiting the government notification for it. The Cabinet has to take a call on the merger. We are waiting for the Cabinet approval.”