Vijaya Bank, Dena Bank tread merger path

In early signs of the government’s ambitious plan for consolidation among state-run lenders to help them gain efficiency and scale, Vijaya Bank and Dena Bank have expressed interest in a merger and are reportedly in the initial stages of discussing synergies. A possible merger between the two relatively smaller state-run banks will lead to formation of a large mid-sized bank, ET Now reported citing unidentified sources.

The proposed merger between Vijaya Bank and Dena Bank is being considered based on both the lenders complimenting each other on their geographical reach, the report said, as Vijaya Bank has strong presence in southern India, while Dena Bank is well-positioned in the west.