The government has reportedly approved the merger of Dena Bank and Vijaya Bank with Bank of Baroda (BoB) to make it a globally competitive lender.
The Cabinet, headed by Prime Minister Narendra Modi, approved amalgamation of the three banks with Vijaya Bank and Dena Bank as transferor banks.
“The amalgamation will be the first-ever three – way consolidation of banks in India, with the amalgamated bank being India’s second largest public sector bank,” a release by the government said.
With the merger, BoB will become the third largest bank after State Bank of India and ICICI Bank.
“There will be no impact on the service conditions of the employees and there will be no retrenchment following the merger,” Union Law Minister Ravi Shankar Prasad told reporters about decisions taken by the Union Cabinet.
The merger has been designed to make BoB as merged entity, a globally competitive lender, Prasad added.
The government had, in September last year, proposed merger of the three banks to make them third largest, globally competitive banks. The scheme of things will come into effect from April 1, 2019.