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Last Updated : May 21, 2019 04:27 PM IST | Source: Moneycontrol.com

Punjab National Bank may takeover Oriental Bank, Andhra Bank or Allahabad Bank

The Delhi-based bank was earlier in the headlines in April for a possible merger with Union Bank of India and Bank of India

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The Punjab National Bank (PNB) is likely to takeover two to three smaller state-run banks -- Oriental Bank of Commerce (OBC), Andhra Bank and Allahabad Bank -- in the next three months, reports Reuters.

The Delhi-based bank was earlier in the headlines in April for a possible merger with Union Bank of India (UBI) and Bank of India (BoI).

The government has been striving to revive the health of public sector banks. In February, it announced a recapitalisation tranche of Rs 48,239 crore for as many as 12 public sector banks in a bid to take them out of Reserve Bank of India’s (RBI) Prompt Corrective Action (PCA) framework. Their lending ability was constrained by RBI when they were put under this framework.

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The 12 banks are Allahabad BankCorporation Bank of IndiaBank of IndiaBank of MaharashtraPunjab National BankUnion Bank of IndiaAndhra BankSyndicate BankCentral Bank of IndiaUnited Bank of IndiaUCO Bank and Indian Overseas Bank.

This tranche was part of a mega recapitalisation drive in October 2017, when an infusion of Rs 2.11 lakh crore was announced by the government in these banks by way of capital. Of this, Rs 1.35 lakh crore was through recap bonds, Rs 18,000 crore via budgetary support and rest as to be raised via market operations.

India Union Budget 2019: What does Finance Minister Nirmala Sitharaman have up her sleeve? Click here for top and latest Budget news, views and analyses.
First Published on May 21, 2019 04:27 pm
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