PSU Bank Stocks Today: SBI, PNB, Bank of Maharashtra Rally on Fake Merger Notification

PSU bank stocks were in focus on Friday, September 18, after a purported government notification claiming a fresh round of public sector bank mergers circulated on social media. The government has rejected the document as fake, saying it was not issued by the Ministry of Finance.

Several public sector lenders nevertheless traded higher during the session, with Bank of Maharashtra, State Bank of India, Punjab National Bank and Central Bank of India among the gainers.

PSU Bank Merger: What The Fake Notification Claimed

The document was formatted as an Extraordinary Gazette of India notification and purportedly issued by the Department of Financial Services under the Ministry of Finance. It claimed that the government had notified an “Amalgamation of Public Sector Banks Scheme, 2026” under Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and the corresponding 1980 legislation.

According to the purported notification, Indian Bank, Bank of Maharashtra and Central Bank of India would be merged into State Bank of India to create an SBI Group. It further claimed that Union Bank of India, Bank of India and Punjab & Sind Bank would be merged into Punjab National Bank, while Canara Bank, Indian Overseas Bank and UCO Bank would be transferred to Bank of Baroda.

The document also made claims about the transfer of assets, liabilities, rights and obligations to the acquiring banks. It said employees would retain continuity of service and that existing customer accounts and banking arrangements would continue following the proposed mergers.

Government Calls Viral Notification Fake

PIB Fact Check rejected the document in a post on X on September 16, saying it was fake and had not been issued by the official Finance Ministry handle, @FinMinIndia. It also advised people to verify such claims through official and credible sources before sharing them. PIB's Fact Check Unit says it verifies government-related claims against authoritative sources and publishes fact checks through platforms including X.

The clarification came as the purported notification continued to circulate online and drew attention to several PSU bank counters. The document should therefore not be treated as an official announcement of a new public sector bank merger plan.

SBI, PNB, Bank Of Maharashtra Among Gainers

Bank of Maharashtra shares rose around 2% to ₹82.33 on Friday. State Bank of India gained nearly 1% to touch an intraday high of ₹993, while Punjab National Bank advanced around 1% to ₹118.

Central Bank of India gained 1.5%, while Indian Bank and Bank of India rose around 1% each. Indian Overseas Bank, Bank of Baroda, Union Bank of India and UCO Bank added around 0.5% apiece.

Canara Bank was the exception among the major PSU bank counters, declining more than 0.5% during the session.

The stock moves came against the backdrop of the viral merger document, although the government’s clarification means the specific merger combinations described in the document are not official.

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