Updated By: LatestGKGS Desk
The merging of three public sector banks- Bank of Baroda, Dena Bank and Vijaya Bank comes into effect from 1st April 2019. Post this merger, the number of PSU banks will come down to 19 from 21, accounting for more than two-thirds of banking assets in the country.
This amalgamation of Dena Bank and Vijaya Bank as part of the Bank of Baroda has created India’s second largest Public Sector Bank after the SBI.
The combined entity after consolidation has also created India’s third-largest lender overall after the SBI and ICICI Banks with a total business of more than Rs 14.82 lakh crore.
The amalgamation of Vijaya Bank and Dena Bank into Bank of Baroda was first proposed on 17th September 2018.
The merger of three PSBs will help create a strong globally competitive bank with economies of scale. It will enable the realization of synergies for networks, low-cost deposits and subsidiaries of these three PSBs.
The merger will result in a substantial rise in customer base, operational efficiency, market reach and a wider bouquet of products and services.
The merger of these three banks will have no adverse impact on employees and customers of individual banks.
The ‘Scheme of Amalgamation’ of Vijaya Bank and Dena Bank with Bank of Baroda was approved by the Union Cabinet, chaired by Prime Minister Narendra Modi, on 2nd January 2019.
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