. The merger of Baroda-Dena-Vijaya – Articels
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The merger of Baroda-Dena-Vijaya

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Hyderabad is another major merger of the country’s domestic banking system. The central government has decided to merge Bank of Baroda (BBB), Dena Bank and Vijaya Bank. This merger will be the third largest bank in the country after SBI and ICICI. The rating agency Moody’s opinion expressed that the merger would have a positive effect on the banking system. Moody’s said that the merger of the bank’s capabilities and the corporate governance could be improved. By the end of this financial year, the merger process is expected to be completed.

In public sector banks in the banking sector too. By March 2018, 70% of deposits and 63% of liabilities are in public sector banks. However, none of these banks are so popular except SBI. On the other hand, the cobwebs are also high. Thus the profits of those banks are falling sharply. The central government has taken steps to merge banks to meet these losses. SBI has already introduced five subsidiary banks and Indian women banks.

The Center has begun merging of BBB, Dena and Vijaya banks. Moody’s suggested that the disadvantaged banks would be able to get more support from the government.

 

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