Bank of Baroda, Vijaya Bank, Dena Bank merger news: Will employees be affected? Check details here
Bank of Baroda, Vijaya Bank, Dena Bank merger: The Union government has decided to merge Bank of Baroda, Vijaya Bank and Dena Bank.
Bank of Baroda, Vijaya Bank, Dena Bank merger: The Union government has decided to merge Bank of Baroda, Vijaya Bank and Dena Bank. This would be the second big merger in the banking sector after the merger of SBI associate banks with the SBI. "We have decided to merge Dena Bank, Vijaya Bank and Bank of Baroda. The merger of the 3 banks will make this the third largest bank of the country," Financial Services Secretary Rajiv Kumar was quoted as saying by ANI today.
Announcing the decision of merger, Union Finance Minister Arun Jaitley told media in Delhi today: "Government had announced in the budget that consolidation of banks was also in our agenda and the first step has been announced."
Will the merger of the three banks affect employees of the BOB, Dena Bank and Vijaya Bank?
The employees of the three banks should not worry about their career in the wake of the merger announced by the government. "No employee will face any service conditions which are adverse in nature. The best of the service conditions will apply to all of them," Jaitley said. The Ministry of Finance also tweeted that the interest of the employees will be protected.
Why government wants Bank of Baroda merger with Vijaya Bank, Dena Bank
Alternative Mechanism under FM suggests @bankofbaroda, @VijayaBankIndia & @dena_bank to consider amalgamation; to create India’s 3rd largest globally competitive Bank @PMOIndia @FinMinIndia @PIB_India @DDNational @DDNewsLive pic.twitter.com/yGGtsN2eCA
— Rajeev kumar (@rajeevkumr) September 17, 2018
The amalgamation of Bank of Baroda, Vijaya Bank and Dena Bank will create India’s 3rd largest globally competitive Bank. Further, according to Jaitley, the amalgamation of the three banks will increase the banking operations. He said that no employee will face any service condition adverse to present conditions.
Baroda, Dena Bank, Vijaya Bank merger: Key points
- The merged banks will be the third largest bank in India.
- The merger will create a strong competitive bank with economies of scale.
- The merger will provide synergies for network, low-cost deposits and subsidiaries.
- The merger will lead to a substantial rise in customer base, market reach, operational efficiency, wilder bouquet of products and services for customers.
- Employees interests will be protectes.
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— Zee Business (@ZeeBusiness) September 17, 2018
- The government will ensure capital support.
-Govt initiates consolidation–Amalgamated entity to be India’s 3rd Largest Bank; First-ever 3-way Bank Amalgamation Process commences; Govt paves way for amalgamated Public Sector Banks with global heft & business synergies for providing wider products & services & enhanced access.