Govt Proposes To Amalgamate Bank Of Baroda, Vijaya Bank And Dena Bank

News World India | 0
| September 18 , 2018 , 00:40 IST

Maintaining the budget agenda of consolidation of banks, the government on Monday announced to amalgamate three PSU lenders Bank of Baroda, Dena Bank and Vijay Bank.

The merger will mark an invention of India's third largest bank.

In a media briefing Finance Minister Arun Jaitley said that the amalgamation will make the lenders stronger with ensuring sustainable growth and increase in their lending ability.

“Two strong banks can absorb a third bank to create a globally competitive bank,” Finance Minister said.

“No employee will face any service conditions which are adverse in nature. The best of the service conditions will apply to all of them,” he added.

Also Read: Govt Considering Merger Of Bank Of Baroda, IDBI Bank, Oriental Bank, Central Bank

The amalgamation will be the first ever three way consolidation of banks in India, with combined business of Rs 14.82 lakh crore, making it India’s third largest Bank.

Jaitley also said that government had announced in the budget that consolidation of banks is our agenda and the first step has been announced.

"The consolidation will help create a strong globally competitive bank with economies of scale and enabled realisation of wide ranging synergies," the statement reads.

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.