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

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

"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, Vijaya Bank and Dena Bank," it said in a regulatory filing.

Bank of Baroda is the transferee bank, while Vijaya Bank and Dena Bank are the transferor banks in the amalgamation process, it added.

The 'Alternative Mechanism' (AM) headed by Finance Minister Arun Jaitley