Government initiates consolidation – amalgamated entity to be India’s third largest bank
First-ever three-way bank amalgamation process commences
Government paves the way for amalgamated Public Sector Banks with global heft and business synergies for providing wider products & services and enhanced access
The Alternative Mechanism comprising of its Chairperson, the Union Finance Minister Shri Arun Jaitley and Cabinet Ministers, Shri Piyush Goyal and Ms. Nirmala Sitharaman met here today in New Delhi and decided that Bank of Baroda, Vijaya Bank and Dena Bank may consider amalgamation of the three banks. The envisaged amalgamation will be the First-ever three-way consolidation of banks in India, with a combined business of Rs. 14.82 lakh crore, making it India’s Third Largest Bank.
The consolidation will help create a strong globally competitive bank with economies of scale and enable realisation of wide-ranging synergies. Leveraging of networks, low-cost deposits and subsidiaries of the three banks has the potential of yielding significant synergies for positioning the consolidated entity for substantial rise in customer base, market reach, operational efficiency, wider bouquet of products and services, and improved access for customers.
Some of the strengths of the envisaged amalgamated entity are—