Bank of Baroda’s merger approved by Cabinet

Why is it in the news?
  • The Cabinet approved amalgamation of Dena Bank and Vijaya Bank with Bank of Baroda paving the way for the first ever-three way merger of public sector lenders.
  • With the merger, BoB will become the third largest bank after State Bank of India and ICICI Bank.
More in the news
    • The government approved the merger in order to make the bank a globally competitive lender.
    • Post this merger, the number of PSU banks will come down to 18.
    • Addressing the media, the Law Minister said that all employees of Vijay Bank & Dena Bank will be transferred to Bank Of Baroda. No retrenchment will take place in the merger process.
    • In September last year, the 'Alternative Mechanism' (AM) headed by Finance Minister had decided to merge Dena Bank and Vijaya Bank with Bank of Baroda.
    • The decision was in a bid to create a stronger and sustainable global-sized lender.
    • Other Benefits of Merger is said to be:
      (1) Leveraging of networks.
      (2) Substantial rise in customer base.
      (3) Market reach.
      (4) Operational efficiency.
      (5) Wider bouquet of products and services.
Source
Indian Express.




Posted by Jawwad Kazi on 3rd Jan 2019
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