Time is right for second tier banking consolidation

One would think that there must be a strong case for consolidation amongst the second teir bankers. Especially for reach into the regional areas. Elders local branches would in my opinion offer an obvious teller facility for the likes of Bendigo and Adelaide Bank in areas they do not service. The synergies of less exposure to rental expense or offloading owned branch buildings where there is duplication must be a method of strenghtening balance sheets.

If the Elders Management produce a good set of numbers for the first half I would suspect that there would have to be some interest outside of the Ruralco option. If turnaround has been achieved they will not be this cheap for long.