Asian share markets are lower today after the US escalated the trade war with China imposing tariffs on about $200 billion worth of Chinese imports. The Nikkei 225 is off 1.1% while the Hang Seng is down 0.8%. The Shanghai Composite is trading down by 0.1%. Overnight, US stocks closed lower. S&P 500 fell 0.6% to 2,888.
Back home, India share markets have opened the day on a flattish note. The BSE Sensex is trading up by 66 points while the NSE Nifty is trading up by 21 points. The BSE Mid Cap index and BSE Small Cap index both opened the day up by 0.3%.
Sectoral indices have opened the day on a mixed note with healthcare stocks and energy stocks witnessing maximum buying interest. While information technology stocks and PSU stocks opened the day in the red.
In the news from the bank sector. In the latest development, the government proposed the merger of three banks, Bank of Baroda, Vijaya Bank and Dena Bank, aimed at creating the country’s third-biggest lender.
That’s seen as preparing the ground for consolidation among the remaining 17 state-owned lenders that have been a drain on the exchequer and marking the next big move in banking reforms.
The boards of the three banks will now consider the proposal.
Reportedly, the combined entity will have a strong presence across the nation with more than 34% of low-cost deposits, a capital buffer of nearly 12% and a business book of Rs 14.8 trillion. Bank of Baroda is the biggest of the three with Rs 10.3 trillion of total business, followed by Vijaya Bank at Rs 2.8 trillion and Dena Bank at Rs 1.7 trillion.
The finance ministry said in a release that the envisaged amalgamation will be first ever three-way consolidation of banks in India.
Previously, the government had pushed through consolidation of the State Bank of India group, with SBI absorbing five associate banks and Bharatiya Mahila Bank. That process was completed last year.
