There has been some development on another big merger in the banking space, but nothing has been confirmed yet. According to news reports, Punjab National Bank, Union Bank of India and Bank of India may receive an invitation from the government to discuss another rounds of mergers.

A finance ministry source has said, "We wouldn't like to wait for too long. If the banks are not able to provide options, then the alternate mechanism (AM) group can make suggestions.” The source further added that there could be a merger in the second or third quarter of the current fiscal.

On April 1, Vijaya Bank and Dena Bank were merged into Bank of Baroda to form the third-largest bank in the country, a process which started in October last year.