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PSU Bank mergers: Takeaways for investors

The countdown has begun. The big bank mergers may fructify over the next 12-18 months. The integration process will be long-drawn, with imminent disruption in lending. There is also the issue of book dilution, which would happen as a result of the government infusing capital at low valuations and issuing additional shares to investors of the amalgamating banks.Radhika Merwin paints a broad picture of the ‘Big Four’ based on various metrics. Note that the analysis is based on assumptions that could change as clarity emerges.