With the amalgamation coming to effect from the beginning of the current fiscal on April 1, 2020, PNB has now become the second largest bank in India.
The amalgamation of Punjab National Bank, United Bank of India and Oriental Bank of Commerce has come into effect from April 1, 2020.
The bank also said the board has fixed March 25 as the date for issuing and allotting its equity shares to the shareholders of the two other banks.
The new entity will be the second-largest bank in the country after State Bank of India (SBI) with a total business volume of Rs 18 lakh crore, he said.
"This is an amalgamation of equals," the bank's Chief Executive Officer and Managing Director Mukesh Kumar Jain told PTI in an interview here.
The bank, which is going to be merged with another state-run lender Punjab National Bank, had reported a profit of Rs 144.96 crore in October-December quarter a year ago.
The bank has decided to reduce the MCLR for different tenors with effect from January 10, 2020, it said in a regulatory filing.
Trends on SGX Nifty indicate a positive opening for the broader index in India, with a 16.5 points gain or 0.15 percent. Nifty futures were trading around 11,277-level on the Singaporean Exchange.
The merger is scheduled to come into force from April 1 next year.
Rao, 57, currently the Managing Director and Chief Executive Officer of Allahabad Bank, has been appointed to the new post up to September 18, 2021.
Interest rates on these products will directly be linked to an external benchmark, which in this case is the repo rate, the bank said in a release
The consolidated bank will have the second largest branch network in India hereafter, with 11,437 branches.
The aforesaid penalty is required to be paid within 14 days from the date of receipt of the RBI order, the state-owned lender added.
Earlier this week, RBI Governor Shaktikanta Das said he expects faster transmission of the three successive repo rate cuts totalling 75 basis points.
Some of the foreign banks operating in India also reported fraud cases worth crores during the last 11 fiscal years.
The bank has revised the marginal cost based lending rate (MCLR) for three loan tenors with effect from June 11, 2019, it said in a regulatory filing.
MCLR for one-month loan and 6-month tenor has been reduced by 0.10 percent to 8.35 percent and 8.60 percent, respectively.
Earlier in January, the government had infused capital in OBC, following which RBI removed the lender from its prompt corrective action (PCA) framework.
Following infusion of capital in these banks, their financial health improved leading RBI to remove them from Prompt Corrective Action (PCA).
The country's largest lender SBI has invited bids from asset reconstruction companies (ARCs) and financial institutions (FIs) to recover an outstanding of Rs 4,975 crore.
This clarification comes on the back of a media report which said the government is planning to merge PNB, OBC and Punjab & Sind Bank.
While Oriental Bank of Commerce has been removed from PCA, RBI has clarified that the government has infused sufficient capital in the entity, bringing net NPA to less than 6 percent.