After deciding to merge Financial institution of Baroda (BoB), Vijaya Financial institution and Dena Financial institution, the federal government is more likely to announce the merger of three different banks earlier than the tip of the yr, in keeping with a report by TickerNews Service.
The three public sector banks (PSBs) are more likely to be Punjab Nationwide Financial institution (PNB), Oriental Financial institution of Commerce (OBC) and Andhra Financial institution, the information service reported.
“Authorities is analysing the merger of PNB, OBC and Andhra Financial institution, because it desires few giant banks within the nation,” a supply was quoted as saying.
The federal government is reportedly holding talks with banking officers to look at the feasibility of such a merger and can probably announce the transfer earlier than December 31.
On September 17, the central authorities introduced the proposal to merge three public sector lenders — BoB, Dena Financial institution and Vijaya Financial institution.
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The cupboard is more likely to approve a scheme of amalgamation of Dena Financial institution, Vijaya Financial institution and BoB subsequent week, the information service reported.
The three state-run banks would work on strict timeline and mandatory regulatory course of is predicted to be over by the tip of 2018-19, they stated, including that the merged entity must be operational from April 1, 2019.
The transfer follows prime lender State Financial institution of India (SBI) merging 5 of its subsidiary banks with itself final yr and taking on Bharatiya Mahila Financial institution, catapulting it to be amongst prime 50 world lenders.