United Bank of India

United Bank of India, a prominent name in Indian banking history, established in 1950 through the amalgamation of four Bengal-based banks, has been a key player in the financial landscape of India. Located in Kolkata, the bank achieved significant milestones before its merger with Punjab National Bank in 2020, becoming part of one of the largest banking entities in the country.

Historically, United Bank of India (UBJ) emerged from a tumultuous period when several smaller banks faced financial instability. The amalgamation included Comilla Banking Corporation, Bengal Central Bank, Comilla Union Bank, and Hooghly Bank, combining their strengths to form a robust institution ready to cater to a burgeoning nation’s banking needs. UBI’s journey is notable for its resilience and strategic expansions over the decades.

During its operational years, UBJ focused primarily on serving the financial needs of Eastern India, while also establishing a presence across the country. It became a government-owned entity in 1969 when the Indian government nationalized major banks to safeguard the financial sector and ensure adequate credit flow to agriculture, small industries, and export businesses. This shift allowed UBI to play a crucial role in India’s economic policies and rural development.

UBJ’s operations expanded in the 1970s and 1980s with the acquisition of smaller banks like Hindustan Mercantile Bank and Narang Bank of India. These mergers helped extend its reach and consolidate its position in the Indian banking sector. Apart from traditional banking, UBI adapted to the digital era by introducing online banking services, mobile banking, and innovative products like the United wallet and UPI Bhim application, ensuring they met the evolving needs of their customers.

However, the bank faced challenges with non-performing assets (NPAs), leading to critical scrutiny and measures to address financial health under regulatory guidance. A forensic audit by Deloitte in 2014 highlighted lapses in NPA detection, reflecting the broader issues plaguing Indian banks.

In a transformative move announced by Finance Minister Nirmala Sitharaman in 2019, UBI was merged with Punjab National Bank and Oriental Bank of Commerce, creating the second-largest public sector bank in India in terms of assets and network. This merger, effective from April 1, 2020, marked the end of an era for UBI as an independent entity and the beginning of a new chapter aimed at creating a more robust and competitive banking entity.

The merger was part of the government's broader strategy to consolidate the banking sector, improve efficiency, reduce costs, and create economies of scale. The integration aimed to leverage the combined strengths of the merging banks to better serve the nation’s economic needs and compete on a global scale.

Throughout its history, United Bank of India stood as a witness and contributor to India's economic growth, overcoming challenges and seizing opportunities. Its legacy continues under the larger umbrella of Punjab National Bank, carrying forward a tradition of trust and commitment to financial inclusion and service to the nation.