Vijaya Bank,Dena Bank to be merged

New Delhi Sept 23: In a bid to achieve government plan of consolidation/Merger of Public sector Banks, two more banks such as Vijaya Bank and Dena Bank have expressed interest in the merger. The banks said that their boards are currently discussing the proposal and the merger would be completed within the year-end.

Currently, Vijaya Bank has a strong presence in southern India, while Dena Bank is well-positioned in the west. Sources say that the merger would create a mid-size bank and the capital requirements for the merged entity would likely increase, on account of Dena Bank’s high non-performing assets.

Sources say that the government wants to consolidate all 21 PSB into 5-6 large and medium banks so that the stressed assets problem can be solved to an extent and it would also help the banks to extend their services to villages and small towns so that customers can be benefited.

In April 2017 the State Bank of India has merged its 5 subsidiary banks and Bhartiya Mahila Bank and has become one among the global banks.