The losers list on the BSE is led by PSU banks – the banks into which the weaker banks are being merged. PNB, Oriental Bank of Commerce, Canara Bank, Indian Bank and Union Bank of India fell around 6-7% and they have crowded the entire list of top losers, jostling each other for the top post.

Fears of integration and lending taking a back seat once again as smooth mergers across all these entities will divert attention from core business – these are issues causing concern.

And these four anchor banks will not get any material benefits. So this merger might prove to be beneficial in the long term but for now, especially in the background of the slowdown, the near-term risks are big.