Union Bank of India Absorbs Andhra Bank
A Comprehensive Overview
Historical Background
Andhra Bank Financial Services Limited, a subsidiary of Union Bank of India, was established in 1991 to venture into the leasing and hire-purchase sectors. Union Bank of India, a prominent government-owned bank in India, provides a wide spectrum of banking services, including netbanking, corporate banking, and NRI banking.
Andhra Bank, previously a medium-sized public sector bank in India, operated an extensive network of over 2,885 branches, 4 extension counters, 38 satellite offices, and 3,798 ATMs.
Merger Consolidation
In April 2020, Andhra Bank and Corporation Bank merged into Union Bank of India as part of a government-led consolidation drive within the banking sector. This strategic move aimed to strengthen Union Bank's position as a leading financial institution in the country.
Mega-Merger Plan
As part of a wider consolidation plan, the government announced the merger of several public sector banks, including Andhra Bank and Corporation Bank, into Union Bank of India. This move was intended to enhance the banking sector's efficiency and competitiveness.
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