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FinMin's Alternative Mechanism gives nod for BoB, Dena, Vijaya Bank merger

The 'Alternative Mechanism' (AM) headed by Finance Minister Arun Jaitley had decided to merge three banks with a view to create a global size lender, which will be stronger and sustainable

Press Trust of India 

FinMin's Alternative Mechanism gives nod for BoB, Dena, Vijaya Bank merger

Public sector lender on Friday said the 'Alternative Mechanism' of the ministry has accorded in-principle approval for its merger with Dena and

"Ministry of Finance, Department of Financial Services on 20th December 2018 has advised that the Alternative Mechanism (AM) has accorded its in-principle approval to the proposed amalgamation of Bank of Baroda, and Dena Bank," it said in a regulatory filing.

is the transferee bank, while and are the transferor in the amalgamation process, it added.

The 'Alternative Mechanism' (AM) headed by Minister had decided to merge three with a view to create a global size lender, which will be stronger and sustainable.

Following which, the board of directors of had given in-principle approval for the proposed merger of the three state-owned lenders on September 29.

Both the other have also approved the merger proposal at their respective board levels.

The new entity to be formed with the merger of Bank of Baroda, Vijaya Bank and is expected to be operational in the beginning of the next financial year.

The merged entity will have a combined business of Rs 14.82 trillion, making it the third largest bank after SBI and

It will have better financial strength. The net NPA ratio will be at 5.71 per cent, significantly better than (PSB) average (12.13 per cent).

The merger of these three lenders comes after India's top lender (SBI) merging its five subsidiary banks and taking over last year, which has catapulted it to be among top 50 global lenders.

Shares of Bank of Baroda traded 0.30 per cent up at Rs 115.20 apiece on BSE

First Published: Sun, December 23 2018. 18:28 IST
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