SBI may absorb Uco, Dena banks

Here is the beginning of my post. And here is the rest of it.Banking consolidation in the public sector is set to deepen further with State Bank of India (SBI) seeking to expand its foothold beyond immediate associate banks by possibly absorbing Uco Bank and Dena Bank. The government has, of course, decided to maintain a hand-off approach to the development, but it is understood that informal consultations are already on among the banks. In October, SBI absorbed State Bank of Saurashtra within its fold. That process is likely to be completed by the end of this fiscal. The government has recently decided to approve a rights issue by SBI. It is also expected to soon okay a capital recast plan for Uco Bank. The plan, to be ratified by the Cabinet soon, will involve reducing its equity base to Rs 500 crore after converting Rs 300 crore of equity into preference capital.