Profitability of PSBs improved post amalgamation: MoS for Finance

Profitability of public sector banks has improved on a consolidated basis after amalgamation, the government said in Parliament on Tuesday. According to RBI’s data, profitability of public sector banks (PSBs) that have been amalgamated/merged during the last five years has improved on a consolidated basis, Minister of State for Finance Bhagwat Karad said in a written reply to the Rajya Sabha.

The profitability of

(SBI), into which five associate banks of SBI and Bhartiya Mahila Bank were merged with effect from April 1, 2017, improved from a loss of Rs 1,378.35 crore in financial year 2016-17 to a profit of Rs 20,410.47 crore in 2020-21, Karad said.

Likewise, Bank of Baroda, into which Vijaya Bank and Dena Bank were amalgamated from April 1, 2019, showed improvement from a loss of Rs 8,339.27 crore in 2018-19 to a profit of Rs 828.96 crore in 2020-21, the minister said.

In case of Punjab National Bank, into which Oriental Bank of Commerce and United Bank of India were amalgamated from April 2020, the performance improved from a loss of Rs 8,310.93 crore in 2019-20 to a profit of Rs 2,021.62 crore in 2020-21.

Union Bank of India, which merged Andhra Bank and Corporation Bank with itself in April 2020, improved financially from a loss of Rs 6,539.22 crore in 2019-20 to a profit of Rs 2,905.97 crore in 2020-21, Karad said.

Similarly,

after amalgamation with Syndicate Bank rose from a loss of Rs 5,837.46 crore in FY20 to a profit of Rs 2,557.57 crore in FY21, and Indian Bank on merger with Allahabad Bank improved from a loss of Rs 4,642.73 crore in 2019-20 to a profit of Rs 3,004.68 crore in 2020-21, the minister added.

Both these amalgamation took effect from April 2020.