Cabinet approves merger of Bank of Baroda, Vijaya and Dena
New Delhi: The Union Cabinet approved the amalgamation of Bank of Baroda, Vijaya Bank and Dena Bank on Wednesday.
The Cabinet chaired by Prime Minister Narendra Modi approved the amalgamation of the banks with Bank of Baroda as the transferee bank and Vijaya Bank and Dena Bank as transferor banks.
The amalgamation, which will be effective from April 1, will be the first-ever three-way consolidation of banks in India.
The amalgamation will help create a strong globally competitive bank with economies of scale and enable realisation of wide-ranging synergies. Leveraging of networks, low-cost deposits and subsidiaries of the three banks has the potential of yielding significant synergies for positioning the consolidated entity for substantial rise in customer base, market reach, operational efficiency, wider bouquet of products and services, and improved access for customers.