The government has announced that Bank Of Baroda, Vijaya Bank and Dena Bank will be merged into a single bank which will become India’s third largest bank. Rajeev Kumar, Secretary Department of Financial Services, said in a press conference today that employees interest would be protected in the merger process.
The three banks, whose boards will examine the amalgamation proposal, will be recapitalised. The name of the new entity is yet to be finalised. “No employee will face any service conditions which are adverse in nature,” said Finance Minister Arun Jaitley. “The best of the service conditions will apply to all of them.” He said the decision was taken so that the lending abilities increase.
The employees of the three banks should not worry about their career in the wake of the merger announced by the government. “No employee will face any service conditions which are adverse in nature. The best of the service conditions will apply to all of them,” Jaitley said. The Ministry of Finance also tweeted that the interest of the employees will be protected.
The amalgamation of Bank of Baroda, Vijaya Bank and Dena Bank will create India’s 3rd largest globally competitive Bank.
Further, according to Jaitley, the amalgamation of the three banks will increase the banking operations. He said that no employee will face any service condition adverse to present conditions.
The merger of five SBI associate banks was done without any job losses, he said. The three banks will continue to work independently till the merger.
Kumar said the merger would help improve operational efficiency and customer services. He said it was time for the next generation of strategic banking reforms.
The government had initiated numerous reforms over the last four years, especially with respect to banking and to ensure clean lending process, he said.
The government is keen to take steps so that history isn’t repeated as far as NPAs are concerned. The government approach is to make the banking sector’s fundamentals strong,” he said.