Bank Merger: What UCO Bank said about merger?

As per the sources, government is planning to create a plan for second round of merger of PSU Banks. As per the plan, there are two options of merger. One option is to merge UCO Bank, Bank of Maharashtra, Punjab & Sind Bank, and Central Bank of India. The second option involves merging with Union Bank of India, Canara Bank, or Indian Bank based on banking software compatibility.

But UCO Bank has refuted reports suggesting that the Union government plans to merge it with three other public sector banks. The bank emphasized that all merger decisions fall under the government’s authority, which holds a 95.39% stake in UCO Bank.

“The bank has no role in the decision relating to merger and, as of now, has not received any information from the Government of India about a merger… the news item is factually incorrect,” stated a filing on Monday. The bank noted that the merger news is unfounded and is not expected to impact the bank materially.

Previously, UCO Bank announced its intention to reduce the government’s stake from the current 95.39% to 75% by fiscal 2025, in compliance with the minimum public shareholding norms set by securities law.