Letter to BS: Merger of BoB, Dena Bank, Vijaya Bank a better deal for all

Post amalgamation, the capital to risk (weighted) assets ratio (CRAR) of the merged entity will be better than the same of two of the three as per figures of last quarter

This refers to “BoB, Dena, Vijaya to merge” (September 18). The government’s decision to merge the three banks  comes in the backdrop of relatively better performance, vis-à-vis past few quarters, by the banks in general. The major positive signals that the government rely upon are: a) reduction in non-performing loans in April-June ’18; b) enhanced provision coverage ratio at the end of last quarter; c) healthy proportion of low-cost deposits to total deposits and year-on-year credit growth in August; d) better show by micro small and medium enterprises; e) real recovery of non-performing loans by more than 50 per cent