New Delhi: The Modi government in New Delhi Wednesday approved the merger of Dena Bank and Vijaya Bank with Bank of Baroda (BoB) despite the opposition by bank unions who went on a strike last Wednesday protesting against the decision.
With the merger, Bank of Baroda (BoB) will become the third largest bank after State Bank of India and ICICI Bank. The government said the decision was taken to make it a globally competitive lender.
"There will be no impact on the service conditions of the employees and there will be no retrenchment following the merger," Union Law Minister Ravi Shankar Prasad told reporters about decisions taken by the Union Cabinet.
"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", the government said.
As per the cabinet decision taken today, Vijaya Bank and Dena Bank are transferor banks and BoB is transferee bank. "The scheme shall come into force on April 1, 2019", the government said.
"Upon commencement of the scheme, the undertakings of the transferor banks as a going concern shall be transferred to and shall vest in the transferee bank, including, inter alia, all business, assets, rights, titles, claims, licenses, approvals and other privileges and all property, all borrowings, liabilities and obligations", the government said.
The move follows top lender State Bank of India (SBI) last year merging with itself five of its subsidiary banks and taking over Bharatiya Mahila Bank, a niche state-run lender for women.
For all the latest News, Opinions and Views, download ummid.com App.
Select Language To Read in Urdu, Hindi, Marathi or Arabic.
I am a Salafi, and I am not a terrorist
German embracing Islam on deathbed, Pilot converting mid-air among Newsmakers of 2018
Chinese economy thrives while Uighur Muslims suffer, Indian Muslim weavers struggle
Carrot And Stick Strategy in Kashmir has ended up ‘All Stick And No Carrot'
Slip of tongue, says Ajmal Qasmi; Requests Lok Sabha to expunge Salafi part of his speech
Cancer detection method of this Muslim scientist and his colleagues is as easy as blood test
Activists say Triple Talaq bill makes Muslim women vulnerable to violence, ask govt to withdraw
71 years after Independence, this Indian village still reels under darkness
We Clapped For Modi, Got A Slap In Return: Indian Retailers
Gloomy days ahead for Amazon, Flipkart as new e-commerce rules come into effect on Feb 1
