Merger
of three banks proposed by Centre
BoB,
Dena, Vijaya boards to examine
Latest Government News
Latest Government News
New Delhi, September 18: The Centre government
of India today said that the state-owned named as Bank of Baroda, Vijaya Bank and Dena Bank would be merged to create the
country’s third largest lender. The move follows top lender State Bank of
India last year merging with itself five of its subsidiary banks and taking
over Bharatiya Mahila Bank, a niche staterun lender for women.
The Finance Minister of
India Mr. Arun Jaitley said that the merger would make the banks stronger and
sustainable as well as increase their lending ability. Finance Minister of
India said in his statement that the bank lending was becoming weak day by day,
hurting corporate sector funds. In his another statement he also said that the
many banks were in a fragile condition due to excessive lending and ballooning
NPAs.
As was in case of SBI, no employee would have service
conditions adverse to present one. Centre Government of India also owns the majority
stakes in 21 lenders, which account for more than two-thirds of banking assets. Financial Services Secretary Rajiv Kumar said boards
of the three banks would examine the proposal. While the employees’ interest
would be protected, brand equity would be preserved.
Source: The Tribune.
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