The board of the Dena Bank has approved its merger with Bank of Baroda, and Vijaya Bank after the government announcement of the merger in order to create the country’s second-largest lender by assets and branches.
Dena Bank said in an exchange filing, “The board meeting has decided to recommend for an amalgamation of our bank with Bank of Baroda and Vijaya Bank.” The bank also said that the unification of the banks would enable the creation of a bank with the business capacity comparable to global banks and sufficient in competing effectively in the country and globally.
The merger would also provide stimulus to building banks with scale, ramping up credit growth, adoption of best practices across amalgamating entities for cost efficiency and improved risk management and financial inclusion through wider reach, the bank said in the statement.
The combined business of consolidated entities would make it second largest PSU bank, after State Bank of India. The combined business mix of these three lenders stood at Rs 14.82 trillion as of June 2018. Post-merger the number of PSU banks will come down to 19.
State Bank had earlier merged itself with five of its subsidiary banks and taking over Bharatiya Mahila Bank, catapulting it to be among top 50 global lenders with over $550 billion in combined assets.