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The boards of state-run Vijaya Bank on Saturday granted in-principle approvals for their amalgamation with other lenders, Bank of Baroda (BoB) and Dena Bank, a move that would create the second-largest entity in the PSU banking space.
Vijaya Bank’s board gave its in-principle approval for amalgamation in line with the finance ministry’s proposal of 17 September.
Vijaya Bank said, “The Board of Directors of the Bank at their meeting held today, i.e., September 29, 2018, has considered and decided to give its “in-principle approval” for amalgamation of Vijaya Bank along with Bank of Baroda and Dena Bank, in line with Department of Financial Services, Ministry of Finance, Government of India proposal dated September 17, 2018 subject to all statutory/regulatory approvals,” in a regulatory filing.
The filing further stated, “Amalgamation would enable the creation of a bank with the business scale comparable to global banks and capable of competing effectively in India and globally. Greater scale and synergy would lead to cost benefits, higher productivity and efficiency of the banking system as a whole.”
“In addition it would provide an impetus for building banks with scale, ramping up credit growth, adoption of best practices across amalgamating entities for cost efficiency and improved risk management and financial inclusion through wider reach.” Vijaya Bank stated.
