|Posted by drgorg on November 25, 2009 at 11:37 AM|
Possiblility of Merger Of Public Sector Banks
In what could turn out to be the beginning of consolidation of Indian public sector banks, Canara Bank is understood to be zeroing in on acquiring mid-sized Dena Bank, for which it had appointed a consultant. The country’s third largest public sector lender, Canara Bank, had mandated Ernst & Young for exploring the possibility of such a deal, sources close to the development said.
When contacted, The Then Canara Bank chairman and managing director MBN Rao had said, “I would not be able to make any comment.” Sources, however, said that the consultant had already submitted a preliminary report and the evaluation process was on. (Financial Express Wed, 25 Nov 2009 News dated 09-05-2007)
Already, the country’s biggest lender, State Bank of India, is in the middle of a consolidation drive. The bank plans to merge all its seven associates with itself. While, State Bank of Saurashtra has been merged, the process of merging State Bank of Indore is on.
In the backdrop of reports that Canara Bank is looking for a merger with Dena Bank, the chairman and managing director of Canara Bank A.C. Mahajan said that he felt consolidation is bound to happen among public sector banks. “Consolidation within the industry in inevitable and we may talk to a bank which may give us wider presence and has the same style of functioning as we do,” Mahajan told Financial Chronicle (Financial Chronicle Nov 23 2009 )
Friends, Now in this backdrop, Can anyone think of merger of RRBs..? about which the Hon'ble finance Minister had indicated that all speculations about FURTHER merger of RRBs should be put to an end for now, since the Fin. Ministry Didn't have any such plan at that time.
Think about it, and post your thoughts here
Untill then Have a very fine time.