He also mentioned that the merger will take a span of four to six months from now. Last month, the boards of all the three lenders had given in-principle approvals for the proposed merger. The merger will be the first-ever three-way consolidation of banks in India, with a combined business of Rs 14.82 lakh crore, making it the third largest bank after State Bank of India (SBI) and ICICI Bank.
As per reports, the merger of these three state run banks would take place through share swap, which will be the part of the scheme of merger. After the merger happens, the total number of state-run banks will come down to 19. Out of the three, Dena Bank has the highest number of non-performing asset (NPA) ratio heaving above 11 per cent and also has the lowest business of just Rs 1.72 crore. While the remaining two banks are comparatively low on NPAs and have higher businesses.
Last year, India largest lender State Bank of India (SBI) merged with five of its subsidiary banks and acquired Bharatiya Mahila Bank. After the merger, SBI now has a total assets of Rs 550 billion in combined.