INSUBCONTINENT EXCLUSIVE:
Shares of Dena Bank declined over 5 per cent early
Wednesday, weighed down by profit booking
The scrip
on Tuesday rallied nearly 20 per cent after the government said state-owned Bank of Baroda (BoB), Vijaya Bank and Dena Bank will
be merged to create India's third-largest lender as part of efforts to revive credit and economic growth.
Bank of Baroda was up 0.93 per
cent at Rs 114.50 at around
9.55 am while Vijaya Bank rose 1.51 per cent to Rs 57.25
the main issue of NPAs and their recovery from big corporates, according to a report by PTI.
All India Bank Officers' Confederation (AIBOC)
said the central problem of the Indian banking industry is the enormous load of NPAs worth of over Rs 10 lakh crore, which have accumulated
on account of "faulty lending practices and the absence of any strategy to recover the amounts from delinquent corporate houses".
AIBEA
General Secretary C H Venkatachalam said there is no evidence that the merger of banks would strengthen the banks or make them more
He said "no miracle happened" after the merger of five associate banks with SBI.
The proposed merger will increase the business size of the
merged entity to Rs 14 lakh crore, making it third-largest lender in the country after SBI and ICICI Bank
asset quality pain of Dena Bank can be easily absorbed by the merged entity
