Three-way merger paves way for more consolidation among banks

The success of the three-way merger of Bank of Baroda, Vijaya Bank and Dena Bank will be crucial as it will pave the revival path for other weak PSBs, mainly those under the PCA frameworks, says Crisil

10% 
Market share PSBs have ceded to private banks in the past five years

10% 
More share they could lose in the next three years if capital constraints stay

Rs 10.4L crore 
Of non-performing assets in the banking system as of June

Rs 1L crore 
Aggregate P&L losses of PSBs in the past five quarters

80% 
Share of PSBs in the NPAs

The ability to manage potential challenges in terms of balance sheet, people and processes, and their impact on growth and operating metrics will determine the success of future mergers