Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved the merger of state-run Vijaya Bank, Bank of Baroda and Dena Bank. All permanent and regular officials of Vijaya Banks and Dena Bank will also be transferred to the merged entity.
Government said in a statement that as per the scheme of amalgamation, Bank of Baroda will be the transferee bank while the other two public sector banks will be transferor banks. That means the businesses of Vijaya Bank and Dena Bank will be transferred to Bank of Baroda.
This marks the first-ever three-way merger in the country’s banking sector. The merged entity will become the third largest bank in the country, after government-owned State Bank of India and private sector lender ICICI Bank. The merger will come into force on April 1, 2019, the government said in its statement
The undertakings owned by Vijaya Bank and Dena Bank that will be transferred to the third state-run lender will include assets, liabilities, rights, titles, claims, licenses, approvals, privileges and properties.
The board of Bank of Baroda will “ensure that the interests of all transferring employees and officers of the transferor bank are protected”.