Bank of Baroda, Vijaya Bank, Dena Bank to set up internal committees to merge operations

Oct 25, 2018 15:44 IST
Bank of Baroda, Vijaya Bank, Dena Bank set up internal committees to merge operations

Bank of Baroda (BoB), Dena Bank and Vijaya Bank on October 24, 2018 decided to constitute internal committees to help integrate the functions of the banks before the merger happens.

These committees include committees on credit, human resources (HR) and information technology. The committees will comprise the Chief Executive Officers (CEOs) and Executive Directors of all the three banks.

The banks also decided to appoint three separate valuers to fix the swap ratios of merger. The valuer appointed by one bank will also evaluate the other two banks, before a common ratio is arrived at.

The merger of Bank of Baroda, Vijaya Bank and Dena Bank

The Union Finance Ministry on September 17, 2018 announced the proposal to merge three public sector lenders - Bank of Baroda, Dena Bank and Vijaya Bank.

The combined lending entity is expected to create India’s third largest bank with a total business of more than Rs 14.82 lakh crore, after the SBI and ICICI Banks.

The amalgamation would be through share swap which will be the part of scheme of merger.

The scheme of amalgamation will be laid before Parliament.

This amalgamated entity will increase banking operations and expansion is inevitable. The three banks will continue to work independently post merger.

The amalgamation would be carried out under Alternative Mechanism. Finance Minister Arun Jaitley, who heads Alternative Mechanism, assured capital support to the merged entity. Other members of Alternative Mechanism included Railway Minister Piyush Goyal and Defence Minister Nirmala Sitharaman.

Post this merger, the number of PSU banks will come down to 19.

Key figures of Amalgamated Bank

Total Business

Rs 14.82 lakh crore

Gross advances

Rs 6.4 lakh crore

Deposits base

Rs 8.41 lakh crore

Gross Non Performing Assets

Rs 80,000 crore

Net NPA Ratio

5.71 percent

Provision Coverage Ratio (PCR)

67.5 percent

Cost to Income Ratio

48.94 percent

Capital Adequacy Ratio (CRAR)

12.25 percent

Government proposes merger of Bank of Baroda, Dena Bank and Vijaya Bank under Alternative Mechanism

 

Video: Check out the latest current affairs of this week

 

Is this article important for exams ? Yes

DISCLAIMER: JPL and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.

Latest Videos

Register to get FREE updates

    All Fields Mandatory
  • (Ex:9123456789)
  • Please Select Your Interest
  • Please specify

  • ajax-loader
  • A verifcation code has been sent to
    your mobile number

    Please enter the verification code below

This website uses cookie or similar technologies, to enhance your browsing experience and provide personalised recommendations. By continuing to use our website, you agree to our Privacy Policy and Cookie Policy. OK