Government decides to merge Dena Bank, Vijaya Bank and Bank of Baroda

The department of financial services secretary Rajiv Kumar said government has decided to merge Dena Bank with Vijaya Bank and Bank of Baroda and the boards of three banks have been told to consider the amalgamation. The finance minister Arun Jaitley Talking on bank merger, said boards of Dena Bank, Vijaya Bank and Bank of Baroda will meet shortly to discuss this amalgamation and no employee will be faced with an adverse service condition post- merger. He added that the government’s announcement of bank merger indicate confidence, business as usual and added that procedure with respect to earlier amalgamations will all be followed. Speaking on the basis of selecting banks for merger, Jaitley said stronger bank must have the strength to support the weak bank. He said adding the three would have synergies for network, low-cost deposits and subsidiaries.

According to news report the amalgamated bank would be the third largest bank in India and will be the first-ever three-way consolidation of banks in India, with a combined business of Rs 14.82 lakh crore, making it India’s third largest bank.”