India commences first-ever three-way bank amalgamation process

By Accommodation Times Bureau

NEW DELHI

The Union Finance Minister Arun Jaitley and Cabinet Ministers, Piyush Goyal and Nirmala Sitharaman on September 17 decided that Bank of Baroda, Vijaya Bank and Dena Bank may consider amalgamation of the three banks.

According to the Ministry of Finance, ‘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 the realisation of wide-ranging synergies. Leveraging of networks, low-cost deposits and subsidiaries of the three banks have the potential of yielding significant synergies for positioning the consolidated entity for a substantial rise in customer base, market reach, operational efficiency, a wider bouquet of products and services, and improved access for customers, it added.





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