CORPORATION, ANDHRA & DENA BANK HOT PICKS ON M&A STREET

Corporation Bank, Andhra Bank and Dena Bank are the hot favourites takeover targets among the large PSU Banks which met the Finance Ministry Officials on Wednesday. It is reported that Union Bank, Bank of Baroda and Punjab National Bank are keen on acquiring Corporation Bank while Canara Bank and Punjab National Bank have shown interest in Dena Bank. Bank of India has expressed interest in Oriental Bank of Commerce. Union Bank and Punjab National Bank have also shown interest in Andhra Bank.
The report also says that discussions are in preliminary stage and may take very long time to materialise. Further Finance Ministry officials are likely to meet CEOs of small to medium size PSU Banks to read their mind of consolidation. CEOs of small to medium size banks are most likely to oppose any move of being acquired by large bank on the grounds that loyal customers will desert them and that the banks are performing better on stand alone basis.
Interestingly none of the large banks were keen on acquiring any bank located in eastern belt namely Uco Bank, Allahabad Bank or United Bank of India on fears that there could be resistance from political front and other labour issue.
None of the large banks showed interest in Bank of Maharashtra, Central Bank of India and Punjab & Sindh Bank due to union problems faced by these banks.
Source: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance-/banking/Corporation-Andhra-Dena-Bank-hot-picks-on-MA-street/articleshow/5249059.cms