Brief analysis of the proposed Bank Mergers is in respect of the 10 PSBs proposed to be merged into 4 PSBs

Brief analysis of the proposed Bank Mergers

This analysis is in respect of the 10 PSBs proposed to be merged into 4 PSBs

All amounts in Rs.lakh crores and as on 31.03.2019

PRE -MERGER

The Top 5 Banks on the basis of Total Business are-
1. PNB- 11.82
2. Canara Bank- 10.43
3. Union Bank of India- 7.41
4. Syndicate Bank- 4.77
5. Indian Bank- 4.30

The Top 5 Banks on the basis of CRAR (in %)

1. Syndicate Bank- 14.23
2. Andhra Bank- 13.69
3. Indian Bank- 13.21
4. United Bank of India- 13.00
5. OBC- 12.73

( PNB is having the least CRAR of 9.73%, followed by Union Bank of India (11.78%)

The Top 5 Banks on the basis of CASA (in %)

1. United Bank of India- 51.45
2. Allahabad Bank- 49.49
3. PNB- 42.16
4. Union Bank of India- 36.10
5. Indian Bank- 34.71

The Top 5 Banks on the basis of Net NPA (in %)
1. Indian Bank- 3.75
2. Allahabad Bank- 5.22
3. Canara Bank- 5.37
4. Corporation Bank - 5.71
5. Andhra Bank- 5.73

( United Bank of India is having the highest Net NPA( 8.67%) followed by Union Bank of India (6.85%), PNB (6.55%), Syndicate Bank (6.16%) and OBC (5.93%)

The Top 5 Banks in terms of Total No.of Domestic Branches-
1. PNB- 6992
2. Canara Bank- 6310
3. Union Bank of India- 4292
4. Syndicate Bank- 4032
5. Andhra Bank- 2885

( Andhra Bank is closely followed by Indian Bank with 2875 Branches)

It is heartening to note that Indian Bank is ranked as No. 1 in terms of Net NPA and Total Business per employee and is the only Bank which is finding a place in the Top 5 (out of the 10 Banks) in all the above parameters ( except Total No.of Domestic Branches, where it is ranked at No.6)

Post Merger

The CRAR of Union Bank of India is expected to improve from 11.78% to 12.39%, PNB from 9.73% to 10.77% and Canara Bank from 11.90% to12.63%. But the CRAR of Indian Bank is estimated to decline from 13.21% to 12.89%.

The total number of employees of PNB is expected to cross the 1 lakh mark (100649) followed by Canara Bank (89885), Union Bank of India (75384) and Indian Bank (42814).
Pre Merger

The top 5 Banks in terms of Total Business per employee (Rs lakhs crores)

1. Indian Bank- 0.0002193
2. Union Bank of India- 0.000199
3. Andhra Bank-0.0001956
4. OBC- 0.0001859
5. PNB- 0.0001815

Post Merger, the Net NPA (in%) is expected to increase from 3.75% to 4.39% in the case of Indian Bank, from 5.37% to 5.62% in the case of Canara Bank and from 6.55% to 6.61% in the case of PNB. However,the same is expected to decline from 6.85% to 6.30% in the case of Union Bank of India.