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Merging of Vijaya Bank, Dena Bank with Bank of Baroda Approved
Merging of Vijaya Bank, Dena Bank with Bank of Baroda Approved: Details, Significance, Highlights
The Union Cabinet chaired by Prime Minister Narendra Modi on 2nd January 2019, has approved the merger of Vijaya Bank and Dena Bank with Bank of Baroda.
The merged entity will become the third largest bank in the country, after government-owned State Bank of India and private sector lender ICICI Bank.
This initiative will help create a strong globally competitive bank with economies of scale and enable the realization of wide-ranging synergies, leveraging of networks and low-cost deposits and substantial rise in customer base and operational efficiency.
The scheme will come into effect from 1st of April 2019 this year.
The pay and allowances and services of the employees of all three banks will remain the same as earlier.
The Government of India had in September 2018 introduced its plan to merge the three lenders as part of efforts to tackle a pile of bad loans plaguing the banking sector.
