PNB clarifies no proposal for changing bank's name after UBI flags issue

Punjab National Bank (PNB) on Tuesday said there is no proposal to change the name of the bank following the merger of two other public sector lenders Oriental Bank of Commerce (OBC) and United Bank of India (UBI) with itself.

This statement comes days after a UBI official said that the government is expected to announce the new name and logo of the merged bank which will become operational from April 1, 2020.

"Punjab National Bank hereby clarifies that there is no proposal to change the name of the Bank," the bank said in a tweet.

Last year, Finance Minister Nirmala Sitharaman had announced the merger of OBC and UBI with PNB, making the proposed entity the second largest public sector bank.

Also, it was decided to merge Syndicate Bank with Canara Bank, while Allahabad Bank with Indian Bank. Similarly, Andhra Bank and Corporation Bank are to be consolidated with Union Bank of India.

Last week, OBC Chief Executive Officer and Managing Director Mukesh Kumar Jain had said this was an amalgamation of equals.

"We have requested Finance Minister that the name of the new bank to be created after amalgamation is either different from the three banks or it should reflect the old identity of the three banks, so that a sense of equal participation appeared in the name," he had said.

The only precedent for such a process is the three-way merger of Bank of Baroda, Vijaya Bank and Dena Bank, where the merged entity has been named Bank of Baroda, the largest among the three.