New Delhi, Sept 17, 2018 : The Union government has decided to merge three state-owned banks - Vijaya Bank, Dena Bank and Bank of Baroda. This move will create India’s third-largest lender.
Financial services secretary Rajeev Kumar made the announcement at a news conference along with Finance Minister Arun Jaitley. He said the boards of the three banks will examine amalgamation proposal.
“No employee will face any service conditions which are adverse in nature. The best of the service conditions will apply to all of them,” Finance Minister Arun Jaitley said on the merger.
Jaitley said the government had announced in the Budget that consolidation of banks was in the agenda and the first step has been announced.
Kumar said the banking sector needs reforms and the government is taking care of banks’ capital needs. Rationalisation of overseas operation in banking sector is in full swing, he said, adding the government is keen to take steps so that history isn’t repeated as far as NPAs are concerned.