Financial Tribune - The CEO of Bank Sepah -- the state-owned lender with which five military banks are merging -- says the number of branches of merged banks will be cut by 10%.

Considering the number of Bank Sepah branches after the merger, Mohammad Kazem Choqazardi referred to programs to optimize the bank�s performance by downsizing.

The move to merge five banks and credit institutions -- affiliated to military organizations � with Sepah started in March, as part of the Central Bank of Iran�s broader plan to reform the dysfunctional banking sector, improve efficiency and eject loss-making banks.

The merged entities include Ansar Bank, Bank Hekmat Iranian, Mehr Eqtesad Bank, Ghavamin Bank and Kosar Credit Institution.