Talks of mergers have resurfaced with reports suggesting a possible merger between Bank of Baroda (BSE:532134), Dena Bank (BSE:532121) and Bank of Maharashtra (BSE:532525), all of which draw a significant part of their business from western India. Likewise, among the south-based banks, there is talk of Vijaya Bank (BSE:532401)and Syndicate Bank (BSE:532276) being merged with Canara Bank (BSE:532483). With the merger process gathering steam, region-wise consolidation being key, investors should gear up for the PSB stocks once again becoming active on the bourses.

Just that this time sentiment around the consolidation buzz seems to be mixed.