The central government has decided to merge three public sector banks namely Dena Bank, Vijaya Bank and Bank of Baroda. The merger will make it the third largest bank of the country.
Finance Minister Arun Jaitley said that the government had announced in the budget that consolidation of banks was also on its agenda and the ‘first step has been’ been taken in that direction. He, however, said that no employee will face any service conditions which are adverse in nature. “The best of the service conditions will apply to all of them,” Jaitley said.
Bloombergquint quoted the finance minister as saying, “In the first step of consolidation, we consolidated the subsidiaries of SBI with the parent bank to create a mega global bank. LIC, which has been keen to acquire a bank for some time, has made an offer for IDBI Bank because it suited their interests…We were waiting, before moving forward, for the situation to start turning. And therefore, now the alternative mechanism has gone ahead and taken this decision today.”
Financial Services Secretary Rajiv Kumar was quoted as saying, “We have decided to merge Dena Bank, Vijaya Bank and Bank of Baroda. Merger of the 3 banks will make this the third largest bank of the country.”
Once the merger goes through, the unified bank will have will have an advances base of Rs 6.4 lakh crore and deposit base of Rs 8.41 lakh crore. The merged bank will have a total of 85,000 employees and 9.500 employees.