Editor’s Take I Govt's proposal to merge Bank of Baroda, Vijaya Bank & Dena Bank

Moneycontrol News

Sakshi Batra discusses with Moneycontrol Policy Editor, Gaurav Choudhury, on what the merger of Bank of Baroda, Vijaya Bank and Dena Bank means for the industry on a whole.

The government has been mulling over merging weak PSU banks with strong banks to ensure better efficiency. Public sector banks are reeling under pressure of stressed assets. Many banks are in a fragile condition due to excessive lending and ballooning NPAs.

The consolidation is part of the government's efforts to clean up the country's banking system where they hope these banks will do better as a combined entity. However, there are some challenges and integration issues that will need to first be ironed out.