Union Bank of India is majority-owned by the Government of India and became significantly larger in April 2020, when it absorbed two other public sector banks — Andhra Bank and Corporation Bank — as part of India’s sweeping PSU bank consolidation.
That merger transformed Union Bank of India into the fifth-largest public sector bank in the country by branch network and business volume, unlike the smaller banks it absorbed, which ceased to exist independently.
Quick Facts
| Bank | Union Bank of India |
|---|---|
| Majority Owner | Government of India |
| 2020 Merger | Absorbed Andhra Bank and Corporation Bank (April 1, 2020) |
| Founded | 1919 |
| Nationalized | 1969 |
| Ranking | 5th-largest Indian public sector bank post-merger |
Ownership History
| Year | Development |
|---|---|
| 1919 | Founded in Mumbai |
| 1969 | Nationalized by the Government of India |
| 2019 | Government announces Union Bank of India will absorb Andhra Bank and Corporation Bank as part of the PSU bank consolidation plan |
| 2020 | Merger takes effect April 1, 2020, making Union Bank of India the 5th-largest public sector bank in India |
| 2020s | Bank continues expanding digital banking services while remaining majority government-owned |
Key Ownership Highlights
- Union Bank of India is one of the “surviving” larger banks from the 2020 consolidation round, absorbing rather than being absorbed — a contrast with United Bank of India, which was merged into Punjab National Bank in the same round.
- The Andhra Bank and Corporation Bank merger significantly expanded Union Bank of India’s southern India footprint, since both acquired banks had strong regional presences there.
- Like all major Indian public sector banks, ownership remains majority government-held, with periodic minority stake dilution to raise capital.
FAQ
Is Union Bank of India government-owned?
Yes, it’s majority-owned by the Government of India.
Did Union Bank of India merge with other banks?
Yes. It absorbed Andhra Bank and Corporation Bank effective April 1, 2020, becoming the 5th-largest Indian public sector bank.
Related Reading
Union Bank of India absorbed both Andhra Bank and Corporation Bank in the same 2020 government-mandated merger.
Related Reading
Union Bank of India also absorbed Corporation Bank in the same 2020 merger that folded in Andhra Bank.