As part of its plan to consolidate public sector banks through mergers and acquisitions, Canara Bank may take over smaller lenders Vijaya Bank and Dena Bank. Discussions in this regard are in progress. Even if finalized earlier, the government may push the proposal forward only after the monsoon session of Parliament gets over in August. Canara Bank is the fourth-biggest bank by market capitalization behind State Bank of India, Bank of Baroda and Punjab National Bank. The government is said to be looking at a three-tier structure for state-run lenders with around 10-12 banks as against the existing 21.  Sources said the objective was to have at least three banks of the size of the country's largest lender SBI. These can be complemented by having mid-sized banks and a few specialized banks catering to particular sectors. Other banks such as Indian Bank, Indian Overseas Bank, and Syndicate Bank have also been asked to look at possible options for consolidation among themselves. Earlier this month, finance minister Arun Jaitley had said after reviewing the performance of state-run banks that the government was "actively working" toward consolidation of public sector banks but had declined to provide details, saying this was a price-sensitive information.