Crisil Ratings in its report said the success of the three-way merger will be crucial as it will pave the revival path for other weak public sector banks
The merger seems to be grossly negative for Vijaya Bank and Bank of Baroda in the short term, as the negative net worth of Dena Bank will have to be absorbed by the merged entity
If done methodically, it could provide a natural hedge against asset quality issues in the long run
Currently, there are 21 PSU banks in the country, including State Bank of India