The board of Bank of India is examining the possibility of merger with other banks,

The board of Bank of India is examining the possibility of merger with other banks, based on the kind of synergy in business.

According Dinabandhu Mohapatra, managing director and chief executive officer, Bank of India, the bank is in the process of strengthening its systems and processes before exploring merger possibilities.

“Discussion is going on, we are examining the possibility (of merger), but before that you have to be strong enough, have some uniqueness in order to be able to attract another partner only then the process will be productive,” Mohapatra told newspersons on the sidelines of a banking colloquium organised by the Confederation of Indian Industry here on Saturday.

The government’s decision to set up an ‘alternative mechanism’ to fast-track consolidation among public sector banks (PSBs) to create strong lenders will help the PSBs streamline costs and improve governance, but a continuous focus on risk management and capital infusion from the government are crucial for a turnaround, industry experts said.

Talks of bank mergers gathered momentum after five of State Bank of India’s associate banks and Bharatiya Mahila Bank merged with the parent entity.