Union Minister Ravi Shankar Prasad says the merger will allow the combined entity under BoB more lending power.
The Union Cabinet on Tuesday approved the merger of Vijaya Bank, Dena Bank with Bank of Baroda. Following the merger of these state-owned banks, BoB will become the third largest bank in India after the State Bank of India and HDFC Bank in terms of assets. Union Minister Ravi Shankar Prasad said that the merger will allow the combined entity under BoB more lending power. BoB will now have a global competitive identity, he added.
The minister also said that all the employees of Dena Bank, Vijaya Bank will now automatically come under BOB. “There will be no effect on their service and working conditions,” assured the minister, adding that no retrenchment will be done. The minister also added these three banks had been merged to make BoB a globally competitive financial institution.