The merger entity of Vijaya Bank, Dena Bank and Bank of Baroda will become the third largest lender in India.
Mumbai: The Board of Vijaya Bank has given its approval to a government proposal of consolidation with Bank of Baroda and Dena Bank as per reports from ANI.
The government had asked the Reserve Bank of India to prepare an action plan and a list of banks for consolidation, the government is going ahead in full swing with its plan to clean up the banking sector by converting them into a stronger and better-capitalised lenders.
Earlier, the state-owned lender Dena Bank, gave its approval to the merger of the three banks. The merger entity of Vijaya Bank, Dena Bank and Bank of Baroda will become the third largest lender in India after State Bank of India and HDFC Bank.
The government had proposed the three-way merger of Vijaya Bank, Bank of Baroda and Dena Bank on September 17.
After the announcement of merger of Bank of Baroda, Dena Bank and Vijaya Bank, the government has pipelined the merger of another three banks namely, Punjab National Bank, Oriental Bank and Andhra Bank.
The government is currently on discussion stage and the conditions are being analysed to path way for the proposed merger of the banks. The government may proceed with the merger of Punjab National Bank, Oriental Bank and Andhra Bank by December this year.