News digest: Merger of three banks, Sensex falls 500 points, and more

Amalgamated entity to be third-largest lender; govt to continue to provide capital support

BoB, Vijaya, Dena to merge

The central government on Monday proposed to create the country’s third-largest bank by amalgamating Mumbai-based Dena Bank and Bengaluru-based Vijaya Bank with much larger Bank of Baroda (BoB) in an all-stock deal. The banks’ boards are expected to meet in 10 days to take a call. The deal, though, is almost a certainty since the government is the majority owner. Read more 

Govt action fails to help market, Rupee

The benchmark Sensex tumbled more than 500 points on Monday after the measures announced by the government over the weekend failed to stem losses in the