DFCC – NDB merger unlikely
View(s):The much talked about and much anticipated merger of NDB and DFCC banks is unlikely to go through, with highly placed government officials saying the state entities which collectively own over 30 per cent in each bank will not vote for the merger.
“They (new government) don’t see any business sense in this,” a high government official told the Business Times. A committee reviewing the previous regime’s banking sector consolidation process, headed by Dinesh Weerakkody, who is a Senior Advisor to Prime Minister Ranil Wickremesinghe, is to make a recommendation on this merger soon. “The recommendation by this committee (tentatively) is that DFCC and NDB shouldn’t merge,” a Central Bank source said.