Mumbai: The board of state-run Dena Bank on Monday approved its merger with Bank of Baroda along with another state-run lender Vijaya Bank.
Last week, government had announced merger of Bank of Baroda, Vijaya Bank and Dena Bank to create the country’s second largest lender by assets and branches.
“The board meeting has decided to recommend for amalgamation of our bank with Bank of Baroda and Vijaya Bank,” Dena Bank said in a filing to exchanges.
Consolidation would enable creation of a bank with business scale comparable to global banks and capable of competing effectively in the country and globally, it said.
“Amalgamation of our bank with BoB and Vijaya Bank would result in a strong amalgamated bank, equipped with financial cushion to deal with post-amalgamation requirements during the stabilisation phase,” the city-based bank said.
Consolidation would also provide 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, it said. (PTI)
