The Board of state-run Vijaya Bank gives approval for merging with Bank of Baroda and with Public Sector Undertaking Dena Bank . The decision was made as per the proposal made by the government to make the merger the country’s second largest Public Sector Undertaking (PSU).
Vijaya Bank said, the board meeting held on Saturday decided to give its principle approval for merging of the Vijaya Bank along with Bank of Baroda and Dena Bank as per the proposal made by the Finance Ministry on September 17 subject to all statutory approvals.
“Amalgamation would enable creation of a bank with business scale comparable to global banks and capable of competing effectively in India and globally,” it said.
It also added that, the amalgamation and greater scale would lead to cost benefit, higher productivity and improves the efficiency of the banking system as a whole.
The merging of the three banks would be through share exchange which will be the part of the scheme merger .