Chennai: The yet-to-be-merged PSU banks — Bank of Baroda, Vijaya Bank and Dena Bank — will come under the banner of “Bank of Baroda Group”, while retaining their names, a report has said.
The mega merger that has been undergoing various requisite approvals will keep intact the names of Vijaya Bank and Dena bank and will see “Bank of Baroda Group” written on top of their names. The Bank of Baroda group will head the two banks, reports said.
The mega PSU bank merger of Bank of Baroda, Vijaya Bank and Dena Bank was announced by government in September this year.
“In the first step of consolidation, we merged SBI subsidiaries with the parent bank, LIC made an offer for IDBI Bank and now, the alternative mechanism has gone ahead and we have taken this decision,” Finance Minister Arun Jaitley, said, on proposing the merger plan.
Since the announcement, the amalgamation has been under process even after the boards of Bank of Baroda and Vijaya Bank gave the in-principle approvals for the merger plan in the same month.
The proposed entity will form country’s second largest PSU bank after the State Bank of India. As of now, Punjab National Bank is India’s second-largest PSU bank according to the asset size and Bank of Baroda is the third-largest PSU lender.
There are a few expected hurdles against the said amalgamation as a nation-wide strike has been called by the All India Bank Employees Association (AIBEA) on 26 December, opposing the government’s proposal to merge these banks.
“The merger will also affect the interests of employees, their jobs and job security. The move would also affect employment opportunities in the banking industry,” news agency PTI reported citing general secretary, AIBEA, CH Venkatachalam.