Why is it in the news?
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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.
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With the merger, BoB will become the third largest bank after State Bank of India and ICICI Bank.
More in the news
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The government approved the merger in order to make the bank a globally competitive lender.
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Post this merger, the number of PSU banks will come down to 18.
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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.
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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.
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The decision was in a bid to create a stronger and sustainable global-sized lender.
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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.