Bank of Baroda, Vijaya Bank, and Dena Bank amalgamate to make the nation's third-biggest moneylender
BOB, Vijaya, Dena bank are getting merge to make the nation's third-biggest moneylender as part of efforts to revive credit and economic growth.
Reporting the arrangement, Finance Minister Arun Jaitley said the merger will make the banks more grounded and economical and in addition increment their loaning capacity.
Giving the setting of the merger of these three banks, he said bank loaning was getting Week, harming corporate sector investments.
Likewise, numerous banks were in a delicate condition because of exorbitant loaning and expanding NPAs, he said.
"This amalgamated will increase banking operations, expand saving money tasks,” he said.
As was in case of SBI, no worker of the three banks would have benefit conditions that are unfavorable to their present one
The legislature claims larger part stakes in 21 loan specialists, which represent more than 66% of keeping money resources in Asia's third greatest economy.
Capital adequacy ratio (CAR) will achieve 11.5% of every 2019 under Basel III standards, and as indicated by government information, the proposed combined substance had CAR of 12.25% before the finish of June 2018.
As per official quoted earlier said, "This might be additionally affected as these banks complete their due diligence and make provisioning for different prerequisites. On the off chance that we need the joined substance to have a credit development of 15%, we will require development capital.
Financial Services Secretary Rajiv Kumar said bank boards of the three banks will look at the amalgamation proposition. “The merging of these three banks will help to improve operational efficiency and customer services.”