The union government has announced its proposal to merge three public sector banks – Bank of Baroda, Dena Bank and Vijaya Bank.
When amalgamated, the new entity will be India’s third largest globally competitive bank.
According to govt estimates NPAs(Non performing asset) ratio of combined will be at 5.71 percent a better-off standing than PSB average of 12.13 percent.
Also Capital Adequacy Ratio(CRAR) will be at 12.25 percent, a significant elation from regulatory norm of 10.875 percent.
The proposal needs to steer through boards of individual banks.
Meetings to deal with the idea is expected to take place soon.
Until the merger, the three banks will continue to work as independent banks, govt sources said.