Vijaya Bank board gives in-principle approval for merger with Bank of Baroda, Dena Bank
New Delhi: The Board of Directors of Vijaya Bank has given its ‘in-principle approval’ to the merger of the bank with Bank of Baroda and Dena Bank.
Vijaya Bank said the merger will create a lender that will have a scale matching some of the global banks.
It added that the amalgamation will enable it to compete more effectively in the domestic market.
According to the bank, greater scale and synergy would lead to cost benefits and higher productivity.
It would also ramp up credit growth apart from the merging entities adopting best practices. The PSU lender added that the merger would have a positive impact on financial inclusion and lead to improved risk management.
The combined business of amalgamated entities would make it second largest public sector bank of the country, it said. While announcing the merger, financial services secretary Rajiv Kumar had said the merged entity would have better financial strength.
“The Board of Directors of the Bank at their meeting held today, i.e., September 29, 2018 has considered and decided to give its “in-principle approval” for amalgamation of Vijaya Bank along with Bank of Baroda and Dena Bank, in line with Department of Financial Services, Ministry of Finance, Government of India proposal dated September 17, 2018 subject to all stautory/regulatory approvals,” Vijaya Bank said in a regulatory filing.