Government to amalgamate BOB, Vijaya and Dena Banks
By MYBRANDBOOK
The government has proposed amalgamation of three public sector banks – Bank of Baroda, Vijaya Bank and Dena Bank. With a combined business of approximately Rs.15 lakh crore, the new entity will be the third-largest bank in India after the State Bank of India and ICICI Bank.
The amalgamation proposal to the banks’ boards is taken in a meeting of the Alternative Mechanism Body chaired by Finance Minister Arun Jaitley and attended by Railway Minister Piyush Goyal and Defence Minister Nirmala Sitharaman. Financial Services Secretary Rajiv Kumar has commented that the banks' board will examine the proposal. This amalgamation is meant to increase banking operations.
Arun Jaitley has assured the employees of the two relatively smaller banks that no employee will face adverse service conditions as a consequence of the amalgamation. Vijaya Bank currently has 15,874 employees and Dena Bank 13,440. The amalgamated entity will have over 85,000 employees, across approximately 9,500 branches. The amalgamation exercise is likely to be completed in 4-6 months and the name of the combined entity will be decided later.
The key difference between a merger and an amalgamation is that a merger is a union of two or more enterprises whereby the assets and liabilities of one are vested in the other, with the effect that the former enterprise loses its identity. On the other hand, an amalgamation is a coming together of two-three corporate entities where the assets and liabilities of all of them are vested with a new entity, with the effect that all of them lose their identities to form a new entity.
This scheme involves no payment of money. Since the scheme involves three listed banks, all formalities such as open offer for minority shareholders will be complied with. There will be a swap ratio for the existing shareholders of these banks. After all the formalities, the number of public-sector banks in India will come down to 19 from 21.
BHIM to join e-commerce, competing with PhonePe and Google Pay
The government-supported payment software BHIM is getting ready to join t...
The latest version of X helps prevent deepfakes on social medi
To combat deepfakes and shallowfakes, Elon Musk revealed a new update t...
India and Namibia collaborate on a payment system similar to U
Once operational, the platform will enable digital transactions in Namibia,...
Sebi issues show-cause notices to six Adani group firms
Sebi issued show-cause notices to six Adani Group firms, including Adani ...
TEJAS NETWORKS INDIA PVT. LTD.
HP INDIA SALES PVT. LTD.
TALLY SOLUTIONS PVT. LTD.
DIGISOL SYSTEMS LTD.
Technology Icons Of India 2023: Mukesh D. Ambani
An Indian billionaire businessman Mukesh Dhirubhai Ambani is currently...
Technology Icons Of India 2023: Ritesh Agarwal
Ritesh Agarwal Founder & CEO of OYO Hotels & Homes-World’s fastest g...
Technology Icons Of India 2023: Sandip Patel
Sandip Patel is the Managing Director, IBM India/South Asia. He is res...
GSTN aims to integrate indirect tax ecosystem on a shared IT infrastructure
Goods and Services Tax Network (GSTN) has built Indirect Taxation plat...
BBNL empowering rural India digitally
BBNL provide high speed digital connectivity to Rural India at afforda...
PGCIL transforming India with its wide power transmission network
Engaged in power transmission, POWERGRID or PGCIL is a stated owned In...
SAVEX TECHNOLOGIES PVT. LTD.
Savex Technologies is the 3rd largest Information & Communication Tec...
TECH DATA, A TD SYNNEX COMPANY
Tech Data Corporation was an American multinational distribution compa...
SATCOM INFOTECH PVT. LTD.
Satcom Infotech Pvt. Ltd is a distribution houses in security in India...