Vijaya Bank, Dena Bank eye merger


While there are talks of higher recapitalization for PSU banks, the government is also not dropping the ball on another important issue of consolidation in the banking space. Sources tell ET Now that two mid sized PSU banks are in initial exploratory talks for a possible merger. 



Vijaya Bank and Dena Bank are said to be discussing synergies and the boards of both banks are discussing pros and cons of such a move. The alliance, if it gets through would be based on the geographical outreach of both banks. Vijaya has a strong presence in southern states while Dena has presence in Maharashtra and neighbouring states. "The combined entity could lead to a large mid-sized bank along the lines of OBC and take care of the banking needs in South and West India", a source aware of the development added. 



The boards of both the banks are said to be looking at each others balance sheet and future liabilities. Vijaya Bank reported 57% jump in Q1 profits to 255 cr rupees with NPAs at 7.3% of advances while Dena bank narrowed losses to 133 cr rupees with NPAs as a percentage of gross advances, rose to 17.37% as of June 2017. 


Dena Bank, currently under Reserve Bank’s prompt corrective action, is looking at improving profitability. Thus, capital requirement post-merger will increase in light of Dena Bank’s high NPA. If blessed by the govt, merger could be completed by end of this fiscal
Share:

No comments:

Post a Comment


  Useful links for Bankers
   * Latest DA Updates
   * How to recover Bad loans/NPA Acs
   * Latest 12th BPS Updates
   * Atal Pension Yojana (APY)
   * Tips while taking charge as Manager
   * Software used by Banks in India
   * Finacle Menus, Shortcuts & Commands
   * Balance Inquiry Number of all Banks
   * PSU & Private Banks Quarterly result
   * Pradhan Mantri Awas Yojana (PMAY)

Contact Form

Name

Email *

Message *