NEW DELHI: The government proposed the merger of three banks — Bank of BarodaNSE 2.87 %, Vijaya BankNSE -6.64 % and Dena BankNSE -4.72 % —aimed at creating the country’s third-biggest lender.
That’s seen as preparing the ground for consolidation among the remaining 17 state-owned lenders that have been a drain on the exchequer and marking the next big move in banking reforms.
The boards of the three banks will now consider the proposal.