The board of public lender Dena Bank has given nod on its proposed merger with Bank of Baroda, to create India’s second largest bank in terms of assets and branches.
Last week, the centre had submitted the proposal of amalgamation of Dena Bank and Bank of Baroda.
“The board meeting has decided to recommend for the amalgamation of our bank with Bank of Baroda and Vijaya Bank,” said Dena Bank in a filing to exchanges.
It added that the amalgamation would help in the creation of a bank comparable to global standards with sustainable and strong foundation.
“Amalgamation of our bank with BoB and Vijaya Bank would result in a strong amalgamated bank, equipped with the financial cushion to deal with post-amalgamation requirements during the stabilisation phase,” the city-based bank said.
The merger would also ensure thrust for building banks with scale, ramping up credit growth, adoption of best practices across amalgamating entities for enabling cost efficiency and tightened up risk management and financial inclusion through wider reach, it said.
As of June 2018, the combined business mix of these three lenders stood at Rs 14.82 trillion.