Vijay Denanath Baroda Bank: Challenges of the urge to merge
NEW DELHI: In August last year, the government asked the 21 public-sector banks (PSBs) to come up with their plans for consolidation. With the proposed merger of Bank of Baroda, Vijaya Bank and Dena Bank — now being jokingly called Vijay Denanath Baroda Bank on social media — the government has taken one more step towards consolidation aimed at creating just a few banks so big that they matter globally. The merger will bring down the number of PSBs to 19. The merger has raised questions due to the health of Dena Bank. Due to its burden of NPAs, it is currently under the Prompt Corrective Action framework of the RBI and has been restrained from further lending. The government believes that the merger would improve the operational synergy and would be better than several entities competing ...