Union bank along with other 13 major commercial banks of India was nationalized on 19 July in the year 1969 by the Government of India.
The government in August 2019, announced a merger of ten public sector banks into four. One of the benefits of consolidation is higher operational efficiency gains to the reduction of the cost of lending according to the official presentation made at the time of the announcement.
RBI by virtue of Section 35A and Section 44A of the Banking Regulation Act, 1949 issued a Master Directions named “Reserve Bank of India (Amalgamation of Private Sector Bank) Direction, 2016.
Under Indian Law, Mergers and Acquisitions safeguard the interest of the secured creditors, in the case of SEBI and Competition law, its targets to shield investors and adverse effects on trade-related competition covered under Companies Act, SEBI, and Competition Act 2002.
The Punjab National Bank has been merged with Oriental Bank of Commerce and United Bank of India and Canara Bank has been merged with Syndicate Bank.