PSU bank stocks were in focus on Friday, September 18, with several public sector lenders trading higher after a document making rounds on social media claimed that several smaller PSU banks would be merged with larger lenders under a proposed government-backed consolidation plan.
The government, however, has dismissed the document as fake and clarified that it was not issued by the Ministry of Finance. The clarification comes after the purported notification circulated online and was presented in the format of an official government gazette.
PSU Bank stocks today
Bank of Maharashtra added 2% to ₹82.33 per share, while SBI rose around 1% to the day’s high of ₹993.00.
Punjab National Bank also gained 1% to ₹118.
Central Bank of India advanced 1.5%, Indian Bank and Bank of India were up 1% each. Moreover, Indian Overseas Bank, Bank of Baroda, Union Bank of India, and UCO Bank added 0.5% each. However, Canara Bank fell by over 0.5%
Fake merger document fuels PSU bank buzz
A fake news report has been circulating online claiming that the three largest PSU lenders — State Bank of India, Punjab National Bank and Bank of Baroda — are acquiring smaller public sector banks as part of the government’s mergers and fewer banks campaign.
The government has rejected the claim and called the document “fake”, while stating that it was not issued by the Ministry of Finance.
PIB Fact Check, in a post on X, said: “The document is fake and has NOT been issued by @FinMinIndia (official Finance Ministry of India handle).” It also urged people to verify such claims through official and credible sources before believing or sharing them.
The document circulating online was formatted as an Extraordinary Gazette of India notification and purported to have been issued by the Ministry of Finance’s Department of Financial Services.
It claimed that an “Amalgamation of Public Sector Banks Scheme, 2026” had been proposed under Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and the corresponding 1980 Act. The fake document also claimed that the proposal had been made after consultation with the Reserve Bank of India.
According to the purported gazette, Indian Bank, Bank of Maharashtra and Central Bank of India would be amalgamated into State Bank of India, resulting in the formation of an SBI Group.
The document further claimed that Union Bank of India, Bank of India and Punjab & Sind Bank would be merged into Punjab National Bank. It also stated that Canara Bank, Indian Overseas Bank and UCO Bank would be transferred to Bank of Baroda.
The purported notification went on to claim that the assets, liabilities, rights, claims and obligations of the banks involved would be transferred to their respective acquiring banks.
It also stated that employees of the banks would retain continuity of service following the proposed mergers. According to the fake document, customer accounts and existing banking arrangements would also remain valid.
Despite the claims circulating online, the government has categorically stated that the document is fake and was not issued by the Ministry of Finance. The clarification from PIB Fact Check therefore puts the purported merger notification in focus as PSU bank stocks trade higher.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
