Is Bank of Maharashtra being Merged with SBI?

The government has opened up its plans to merge public sector banks to create global scale banks that can compete with banks of other countries. Right now only SBI is the top ranked bank of India with a rank of 43. Government wants atleast 2 Indian Banks under Top 20 Banks.

As per sources, the government is considering merging Indian Overseas Bank (IOB), Central Bank of India (CBI), Bank of India (BOI), and Bank of Maharashtra (BoM) with larger banks such as Punjab National Bank (PNB), Bank of Baroda (BoB), and State Bank of India (SBI).

The process of merging public sector banks (PSBs) may start soon. As per reports, the process may start by the end of this financial year. In the first phase, 3–4 smaller PSBs may be merged with larger banks. The objective is to strengthen small banks that currently face challenges in large-scale lending, efficiency, and risk management. Banks such as Punjab & Sind Bank, UCO Bank, and Bank of Maharashtra are being considered for this phase of mergers.

There is growing speculation that Bank of Maharashtra may be merged with the largest bank of India – State Bank of India (SBI). The reports and sources are also pointing towards it. Now, the Bank of Maharashtra Employees and Officers Federation has asked Finance Minister Nirmala Sitharaman to confirm whether Bank of Maharashtra is being merged with SBI or not.

The Federation says that the reports have caused confusion and concern among the bank’s employees, customers, and investors. In their letter, the federation said, “Bank of Maharashtra has consistently shown excellent performance across all key areas of banking. It remains a leader in operational efficiency, credit growth, and financial inclusion. The bank has also received many awards for its outstanding contribution to the banking sector.”

The federation further noted that the Bank of Maharashtra plays a crucial role in the state’s economy, acting as a financial backbone for millions of people through its strong local presence and community connections. They also mentioned the Finance Minister’s attendance at the Bank’s Foundation Day celebrations in 2024 and 2025, saying her words of appreciation have always motivated the staff.

The employees have requested the government to issue an official clarification denying the merger reports. They said this will help restore confidence among stakeholders and allow the bank to continue its independent journey of growth, innovation, and nation-building.

More details will be provided soon.