Shares of Union Bank, BoI, and Punjab National Bank declined over 5 per cent session each in Tuesday’s sessions. Shares of Union Bank of India, Bank of India and Punjab National Bank traded 4.77 per cent, 4.34 per cent and 4.20 per cent lower, respectively, on BSE around 10:40 am.  Amidst, government is planning on focusing and planning a second round of merger in public sector banks.
Earlier in 2018, the government proposed to merge Bank of Baroda, Vijaya Bank and Dena Bank, making the country third largest lender through the substitute mechanism. Both Vijaya and Dena then, merged with BoB on April 1, 2019.
The report quoted a senior executive with a PSU bank saying that merger is not the antidote for every banking woe. The government should not force mergers only to create too-big-to-fail structures.
Read EquityPandit’s Technical Analysis Of Nifty PSU Bank