Damage control: Syndicate Bank merger on the cards?
While the finance ministry and the RBI are yet to decide on the future course of action for the scam-hit Syndicate Bank, possibility of the lender being merged with another big bank cannot be ruled out.business Updated: Aug 09, 2014 01:41 IST
While the finance ministry and the Reserve Bank of India are yet to decide on the future course of action for the scam-hit Syndicate Bank, possibility of the lender being merged with another big bank cannot be ruled out.
The finance ministry has indicated that the consolidation among public sector banks would be critical in the coming years. Besides Syndicate Bank, Dena Bank and United Bank of India could also be possible candidates for merger. The government has said it would only play the role of a facilitator in the exercise.
“We will look into the matter (of Syndicate Bank) in detail and decide on next steps... At this point, we cannot say anything and we cannot rule out anything including its merger,” an official source who did not wish to be identified told HT.
SBI Capital Markets, which has already been appointed to undertake a study on mergers, is slated to submit its report within a month. The report is likely to single out a few lenders, which would be possible candidates for merger.
“Once the report is ready, a clear roadmap can be expected,” the source added.
The government also said it would be announcing new measures to further improve the overall banking system while bringing in more transparency.