For the second day in trade, bank shares traded in green taking the BSE Bankex to a high of 27,297, a 1% increase. The move sets in after the banks receive 'in-principle approval ' from the government for an alternative mechanism for getting further in the merger and the consolidation process.
As an alternative process, GoM or Group of Ministers shall be constituted and the banks under consideration shall be provided to these GoM . Also, the merger shall be implemented depending on the regions covered i.e. banks covering similar regions shall be merged. Also, capital adequacy, asset quality and profit adequacy shall also be factored in while deciding on bank merger.
In the beginning of the fiscal year, SBI consolidated with its subsidiary companies
PNB, ICIC Bank, Bank of Baroda and State Bank of India were the top gainers in the BSE Bankex while Kotak Mahindra was the only loser in trade today in the index.