18 September 2018 The government has chosen the three banks for the merger as they fit well into the strategy of Anchor Bank (Bank of Baroda) + Good Bank (Vijaya Bank) + Stressed Bank (Dena Bank). While both BOB and Vijaya Bank have reported an improvement in their earnings performance, Dena Bank is under the RBIs Prompt Corrective Action (PCA) framework and has been restrained from further lending. Dena Bank has a GNPA/NNPA ratio of 22.7%/11.0%, while Vijaya Bank has a significantly lower GNPA/NNPA ratio of 6.2%/4.1%. This compares with the 12.5%/5.4% GNPA/NNPA ratio for BOB. The merger of BOB, Vijaya Bank and Dena Bank will create the third largest lender in the country with an advances and deposits market share of 7.0% and 7.3%, respectively. While BOB already has a wide-spread network, Dena Bank and Vijaya Bank are more regional focused banks.