NEW DELHI, Jan. 2 (Xinhua) -- The Indian government Wednesday approved the merger of three state-owned banks - Vijaya Bank, Bank of Baroda and Dena Bank, officials said.
"The Union Cabinet chaired by Prime Minister Narendra Modi has approved the scheme of amalgamation for amalgamating Bank of Baroda, Vijaya Bank and Dena Bank, with Bank of Baroda as the transferee bank and Vijaya Bank and Dena Bank as transferor banks," a statement issued by government said.
This marks the first-ever three way merger in India's banking sector and will create the country's second largest public sector lender.
"The amalgamation will help create a strong globally competitive bank with economies of scale and enable realisation of wide-ranging synergies," the statement said.
The merger according to government will be effective from April 1 this year.
Last week United Forum of Bank Unions, representing more than 1 million bank employees across India, observed a day-long nationwide strike against the amalgamation of the three banks.
