Business

Dena Bank Board Approves Merger With Bank Of Baroda And Vijaya Bank

JAVED SAIFI | 0
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| September 24 , 2018 , 18:59 IST

State-run Dena Bank board members on Monday have approved the proposal of a merger with other public sector undertaking banks- Bank of Baroda and Vijaya Bank.

The merger was proposed by the Finance Ministry of India on September 17 in order to maintain its budget agenda of consolidation of banks in India. The government had proposed the amalgamation of three PSU lenders Bank of Baroda, Dena Bank and Vijay Bank.

The merger is aimed at developing India's third-largest lender with ensuring sustainable growth and increase in lending ability. The amalgamation of the three PSU Banks will witness first-ever three-way consolidation of banks in India.

The three banks have a combined business of Rs 14.82 lakh crore.

Also Read: Govt Proposes To Amalgamate Bank Of Baroda, Vijaya Bank And Dena Bank

The amalgamation will help the three banks to create a strong globally competitive bank with economies of scale and enabled realisation of wide ranging synergies.

After the three banks merger, the new bank will create a lender with a nationwide reach. The Bank of Baroda has a wide spread network with Dena Bank and Vijaya Bank are more regionally focused.

While announcing the decision of the government Finance Minister Arun Jaitley had said, “Two strong banks can absorb a third bank to create a globally competitive bank."