The strategy which the government has adopted is merging one weak bank with its stronger counterparts.  In this case, the weaker bank is Mumbai-based Dena Bank. The lender came under prompt corrective action of the RBI in May 2017 in view of high Net NPA and negative RoA (return on assets) and now faces restrictions on lending and several other bank operations.

However, the indices later recovered on management of these companies allaying concerns over their financial position.

The country's largest lender State Bank of India on Thursday said it is not in a position to acquire more banks at the moment as it needs 2-3 years to see gains from the consolidation effected last year.

Air India is just about managing to stay afloat on the Rs 30,000 crore bailout package extended by the previous UPA regime in 2012 for a decade.

While the Bank of Baroda stock was trading 2.07% higher at 115.80 on the BSE, the Dena Bank stock fell 1.31% to trade at 18.85 level against the previous close of 19.10 level. On Tuesday, the Bank of Baroda stock closed 17.04% or 23 points lower on the NSE. On the BSE, the stock closed 16.03% or 21 points lower at 113 level.

These three state-run banks would work on strict timeline and necessary regulatory process is expected to be over by the end of 2018-19, sources said.

The BJP-led NDA government probably had the right intention when they knocked on the doors of Ravi Venkatesan, former chairman of Microsoft India and P S Jayakumar, an ex-citibanker turned entrepreneur, for helping them in conducting an experiment of sorts with Bank of Baroda.

Bank of Baroda, Dena Bank and Vijaya Bank to merge; govt promises to protect employees' interests; Bank of Baroda, Vijaya Bank, Dena Bank stocks make major moves post merger announcement; US-China trade war: Trump imposes fresh round of tariffs on imports worth $200 bn; India delays imposition of retaliatory tariffs on U.S. goods till November 2; gold to become more expensive? Govt may hike import duty to stem rupee fall. Watch more in this episode of Business Wrap.

Global brokerage Jefferies referred to Bank of Baroda as the base, Vijaya Bank the kicker and Dena Bank as 'bad bank'.

The rupee fell 46 paise to close at 72.97 level, its lowest ever against the US dollar in trade today which dampened market sentiment. The Indian currency had closed at 72.51 to the dollar on Monday. Led by the sharp fall in stocks, the market capitalisation (m-cap) of BSE-listed companies plunged by Rs 2,72,549.15 crore to Rs 1,53,64,470 crore since Friday.

The stock closed 17.04% or 23 points lower on the NSE.  On the BSE, the stock closed 16.03%  or 21 points lower at 113 level. The market capitalisation of the stock fell by Rs 5,727 crore to Rs 30,013 crore on the BSE.

Bank of Baroda, Dena Bank and Vijaya Bank to merge; govt promises to protect employees' interestsMoving ahead with consolidation of public sector banks, Finance Minister Arun Jaitley on Monday announced the merger of Bank of Baroda, Vijaya Bank and Dena Bank. The merged entity would be India's third largest. There will be no adverse impact on employees of merged entity, the Finance Minister added. Department of Financial Services Secretary Rajeev Kumar said that the new bank will ...

Dena Bank was on RBI's Prompt Corrective Action (PCA) list and other two banks have the strength to subsume a weaker bank, Finance Minister Arun Jaitley said on Monday. 

The merger of Dena Bank and Vijaya Bank with Bank of Baroda will create new challenges for the amalgamated bank.

The merged entity or amalgamated bank would be India's third largest.

This would be first charge sheet in the case pertaining to loans of over Rs 6,000 crore given to Kingfisher by a consortium of 17 banks led by State Bank of India which alone had an exposure of Rs 1,600 crore.

The online exam (preliminary and main) is tentatively scheduled in December 2018 and January 2019. The shortlisted candidates will be provisionally allotted any of the 19 banks.

There are hundreds of private and government banks in India, but how much do they have in assets? Watch BusinessToday.In video on the 10 largest banks in India by assets and market capitalisation.

In his letter to the parliamentary committee, the celebrated economist Rajan listed out the key reform areas to prevent recurrence of the kind of bad loan that the system is currently grappling with.

PS Jayakumar was one of the two selected from the private sector and joined the state-owned bank in October 2015. He was appointed for a three-year term that will come to an end on October 12, 2018.