Government to merge Vijaya Bank, Dena Bank and Bank of Baroda
New Delhi : The third largest merger of the country comes in as the Union Government on Monday decided to merge state-owned Vijaya Bank, Dena Bank and Bank of Baroda.
"We have decided to merge Dena Bank, Vijaya Bank and Bank of Baroda. The merger of the three banks will make this the third largest in of the country," Financial Services Secretary Rajiv Kumar announced, while addressing a press conference.
"Boards of the three banks will examine amalgamation proposal. The banking sector needs reforms and the government is taking care of banks’ capital needs. Rationalisation of overseas operation in banking sector is in full swing. The government is keen to take steps so that history isn’t repeated as far as NPAs are concerned," he added.
Finance Minister also talked about the merger and said "Government had announced in the budget that consolidation of banks was also in our agenda and the first step has been announced.
"No employee will face any service conditions which are adverse in nature. The best of the service conditions will apply to all of them."
In terms of financial bodies merger this would be the second largest after State Bank of India had merged with its associate banks across the nation.