Government proposes to merge Bank of Baroda, Vijaya Bank, Dena Bank

NEW DELHI: The government on Monday introduced its plan to merge three public sector banks (PSBs) to create the 3rd greatest lender of the country, as part of efforts to wash up the country's banking machine.

"No employee will face any service conditions which are adverse in nature. The best of the service conditions will apply to all of them," Union finance minister Arun Jaitley said while pronouncing the government's plan to merge the three state-run banks.

"Alternative Mechanism under FM (finance minister Arun Jaitley) suggests Bank of Baroda, Vijaya Bank and Dena Bank to consider amalgamation." division of economic services secretary Rajiv Kumar said.

Kumar added that the new entity is "positioned for substantial rise in customer base, market reach, operational efficiency and wider bouquet of products and services for customers."

The government will proceed to supply capital give a boost to to the merged financial institution, Kumar added.

Alternative Mechanism underneath FM suggests @bankofbaroda, @VijayaBankIndia & @dena_bank to imagine amalgamation; to c… https://t.co/HutVXtilj7

— Rajeev kumar (@rajeevkumr) 1537188525000

Jaitley said that the amalgamation process "will increase the banking operations." The board of the banks will meet to chart out a correct roadmap and imagine the process, the finance minister added.

(With inputs from businesses)