NEW DELHI: The Government on Monday said state-owned Bank of Baroda, Vijaya Bank, and Dena Bank will be merged to create the country’s third-largest lender as part of efforts to revive credit and economic growth.
The move follows top lender State Bank of India last year merging with itself five of its subsidiary banks and taking over Bharatiya Mahila Bank, a niche state-run lender for women.
Announcing the plan, Finance Minister Arun Jaitley said the merger will make the banks stronger and sustainable as well as increase their lending ability.
Giving the context of the merger, he said bank lending was becoming weak, hurting corporate sector investments.
Also, many banks were in a fragile condition due to excessive lending and ballooning NPAs, he said. (AGENCIES)