Another merger of banks soon |
After the successful merger of three public sector banks, India`s finance ministry is gearing up for another round of mergers which may include - Punjab National Bank, Union Bank of India and Bank of India. The merger can take place in the second or third quarter of the current fiscal year. The merger process of Bank of Baroda, Vijaya Bank and Dena Bank had started in October last year. On April 1, Vijaya Bank and Dena Bank were merged into Bank of Baroda to form the third-largest bank in the country. Officials though have stated that they are looking at various combinations and the merger may not necessarily involve three parties. On the flip side, some officials believe that, time is not right for another merger as Bank of India has just emerged from the Reserve Bank of India`s prompt corrective action framework. The PCA is a set of guidelines set by the RBI for banks that have weak financial metrics. The other two banks, Punjab National Bank and Union Bank of India, are also in recovery stages.
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