Stating that it may take appropriate rating actions after the merger proposed earlier this week gets a formal approval, it said the combined entity will require "significant bandwidth" in the management for business growth and NPA resolutions. Dena Bank's lower capital buffers are offset by Vijaya Bank's higher capital buffers, it said, adding that the merged bank may need additional tier 1 capital depending on internal accruals for FY19. However, from a longer term perspective, the merger will be positive with benefits like reducing combined operating costs, lower funding cost and strengthened risk management practises, it said. The asset-liability mismatch issues at smaller banks (Vijaya and Dena) can be better addressed at the consolidated level, it said.