Bank Merger |
On the lines of State Bank of India`s Merger with 6 other banks last year the Cabinet approves the Merger of three banks in the private sector making bank of Baroda the third largest entity after State Bank of India and HDFC Bank. The Union Cabinet yesterday approved the merger of Vijaya Bank, Dena Bank with Bank of Baroda. The move will make Bank of Baroda 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. The move will not affect the employees of Dena Bank, Vijaya Bank as they will automatically come under Bank Of Baroda. The government in September last year had announced the merger of these three banks. It was part of the government`s strategy to promote consolidation in the sector marred by loads of non-performing assets. Before this, the State Bank of India had merged five of its subsidiary banks with itself and took over Bharatiya Mahila Bank, becoming one of the top 50 global lenders. The approval for merger of these three banks comes days after nine bank unions, with close to 1 million employees, held a nation-wide bank strike against the decision.
|
|
|
|