In the latest development, the Indian government has announced the merger of three public sector banks — Bank of Baroda, Dena Bank and Vijaya Bank. An announcement in this regard was made after a meeting of the ‘alternative mechanism’ set up last year to consider consolidation in the banking sector. The proposal will now need to be passed by the boards of individual banks.
Rajiv Kumar, secretary in the Department of Financial Services, has tweeted the announcement.
The merger of Bank of Baroda, Vijaya Bank and Dena Bank will create a lender which will be the third largest in India.