Cabinet approval for bank merge

Cabinet approval for merger of Vijaya, Dena and Bank of Baroda, merger in three ways for the first time in Indian banking system

Under the chairmanship of Prime Minister Narendra Modi, the Union Cabinet has cleared the merger of Bank of Baroda, Vijaya Bank and Dena Bank, Bank of Baroda Transfer (Transferring) Bank, whereas Vijaya Bank and Dena Bank Transporter (Transferring) banks.

This is the first trilateral merger of Indian banks. After the merger, the bank will become the second largest public sector bank in the country.

The merger will help to build a strong competitive bank globally and will be able to co-ordinate on a large scale. The interactive banking network, low cost deposits, and the benefits of three bank subsidiaries, and the ability to cooperate with the customer base, market access, operational efficiency, many products and services as well as the ability to collaborate together for a joint venture of the customer.

Key issues of a merger plan

Bank of Baroda is a transfer bank and Bank of Baroda is a transferred bank. The scheme will be implemented from 1.4.2019. After the scheme is started, transfer of all transfers from banks to the transferred bank will be transferred to the transferred bank and all business assets, rights, ownership, claims, licenses , Recognition, other privileges and all assets, liabilities, liabilities Rta shall be permanent and regular officer or employee of the bank officers and employees of the bank transfer. The pay and allowances payable for their services at the transferred bank will not be less attractive than the wages and allowances of the banks. The Board of Transfer banks will ensure that the interest of the employees and the officers transferred will be secure. The transferable bank transferor will issue the shares to the bank holders in the share swap ratio. If there are any grievances related to it, then it can be summed up through the expert committee.

After Banking Merger

After the merger, the bank will be well-equipped to meet the debt requirements of the economy, to bear the trauma and to increase its resources. Increasing business and profits of the bank, extensive production, adoption of technology will be possible and through extensive reach the cost will be reduced, improve risk management and increase financial inclusion.

The merger will create a larger bank than the global banks and compete to compete in India and the world.

The power of individual banks Due to low cost CASA deposits will benefit from Dena Bank's reach, Vijaya Bank's profits and availability of capital as well as the broadband coverage of Bank of Baroda, global networking, operational capability and extensive product and service delivery.

The merger will lead to large repositories of the merchandise and a large database that will benefit from the rapidly digitally-funded banking system.

Through the strong network, mass banking services will be available and loans will be easily available.
Cabinet approval for bank merge Cabinet approval for bank merge Reviewed by S Current Affairs on January 03, 2019 Rating: 5
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