The merger is scheduled to come into force from April 1 next year.
Rao, 57, currently the Managing Director and Chief Executive Officer of Allahabad Bank, has been appointed to the new post up to September 18, 2021.
Basel III is an international regulatory framework with a set of reforms to improve the regulation, supervision and risk management within the banking sector.
"Merger won't lead to retrenchment employees," Mehta said.
It comes against the backdrop of the government's announcement on August 30 about merging 10 public sector banks into four entities, as part of which PNB will merge Oriental Bank of Commerce (OBC) and United Bank of India (UBI) with itself.
The consolidated bank will have the second largest branch network in India hereafter, with 11,437 branches.
Sharekhan is bullish on Punjab National Bank has recommended buy rating on the stock with a target price of Rs 85 in its research report dated August 01, 2019.
Mehta said the target is to contain gross NPAs below 12 percent and net NPAs at 6 percent in FY20 from 7.17 percent.
The decision in this regard was taken in the board meeting held July 25, PNB said in a regulatory filing.
PNB said Bhushan Power & Steel Ltd misappropriated bank funds and manipulated its books of accounts to raise funds from consortium lender banks
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 51 points or 0.43 percent. Nifty futures were trading around 11,766-level on the Singaporean Exchange.
PNB said Bhushan Power & Steel Ltd misappropriated bank funds and manipulated its books of accounts to raise funds from consortium lender banks.
The bank suffered losses allegedly after jewellers Nirav Modi, Mehul Choksi and some bank employees collided to defraud PNB of about Rs 1,000 crore. The scam was unearthed in February 2018.
The outlook reflects the negative return of asset (ROA) for two consecutive years, weak capitalisation with common equity tier (CET) I of 6.21 per cent in the fourth quarter of last fiscal, Ind-Ra said in a release.
Morgan Stanley prefers large corporate lenders (over PNB) where it sees much better risk-reward
The bank improved its provision coverage ratio to 74.5 percent in March quarter against 68.9 percent in December quarter but net interest margin contracted sequentially to 2.45 percent against 2.64 percent.
On March 29, the bank had entered into an agreement for sale of 1,08,91,733 equity shares held in PNB Housing Finance to Varde Holdings at Rs 850 per share, aggregating to Rs 925.80 crore
The Competition Commission of India (CCI) in a tweet May 8 said it 'approves acquisition of 6.5 per cent of the equity share capital of PNB Housing Finance Ltd by General Atlantic Singapore HF Pte Ltd'.
The Finance Ministry may hold a round of discussion with some public sector banks regarding the second round of mergers in the banking space
Yadivanshi, having 34 years of banking career, had joined PNB as a management trainee in 1985.
Net Interest Income (NII) is expected to increase by 44.7 percent Y-o-Y (up 3.3 percent Q-o-Q) to Rs. 4,432.4 crore, according to Motilal Oswal.
The stake sale provided timely support to bank's capitalisation, which has been challenged by high credit costs and investment losses, in addition to the negative effect of fraudulent transactions PNB discovered between February and March 2018.
Sharekhan is bullish on Punjab National Bank has recommended buy rating on the stock with a target price of Rs 110 in its research report dated April 04, 2019.