The merger proposal has to be approved by board of all the banks and the whole process is expected to be completed in 4-6 months.
Dena Bank on Friday reported widening of its net loss to Rs 1,225.42 crore in the March quarter on mounting bad loans and higher provisioning to cover them.
New Delhi: In an attempt to create stronger public sector banks in the country, the Central government on Monday said three state-owned lenders — Bank of Baroda, Vijaya Bank and Dena Bank — will be merged to create the country’s third largest lender.
The merger proposal has to be approved by board of all the banks and the whole process is expected to be completed in 4-6 months. Currently, there are 21 scheduled banks and one payment bank in the public sector. After the merger, India will have 19 scheduled banks and one payment bank.
The official said that the plan is intended to amalgamate a weak bank like Dena Bank with strong bank so that the merged bank becomes a strong entity.
( Source : Deccan Chronicle. )
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