The union government announced on Monday September 17, that it has decided to merge Bank of Baroda, Vijaya Bank and Dena Bank to create India’s third largest lender.
Banking secretary Rajiv Kumar said in a press conference that, “employees interest would be protected in the merger process. The merger of five SBI associate banks was done without any job losses, he said. The three banks will continue to work independently after the merger.”
He 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 that “the government is keen to take steps so that history isn’t repeated as far as NPAs are concerned.”