BoB, Vijaya Bank, Dena Bank merger update: BoB Board okay with proposal; process to conclude by this time

Bank of Baroda, Vijaya Bank Dena Bank merger: The Board of Directors of Bank of Baroda has approved its proposed amalgamation with Vijaya Bank and Dena Bank. The BoB has sent the recommendations to the Union Government and the entire process is likely to be completed in the next six months. BoB managing director and CEO PS Jayakumar today told ET Now today that the fixing of swap ratio is the next step in the merger process. 

Jayakumar told the channel that BoB will continue to target 15-20% credit growth. 

In the agriculture segment, the public sector bank is eyeing to grow exposure in the agriculture segment to 16% from the current Rs 51000 crore. Jayakumar sees trouble in the farm loan waivers but at the same time, he is expecting new credit avenues in the sector. 

Earlier on September 24, the board of Dena Bank had approved its merger with Bank of Baroda along with another state-run lender Vijaya Bank. The decision was taken a week after the Central government announced a merger of Bank of Baroda, Vijaya Bank, and Dena Bank to create the country's second-largest lender by assets and branches. "The board e board of state-run Dena Bank Monday approved its merger with Bank of Baroda along with another state-run lender Vijaya Bank," PTI had quoted Dena Bank as saying. 

"The board meeting has decided to recommend for the amalgamation of our bank with Bank of Baroda and Vijaya Bank," Dena Bank said in a filing to exchanges has decided to recommend for the amalgamation of our bank with Bank of Baroda and Vijaya Bank," Dena Bank has said in a filing to SEBI. 

The Vijaya Bank Board also approved the merger in the last week of September. 

The merger would create India's second-largest entity in PSU banking space. 

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“Amalgamation would enable the creation of a bank with the business scale comparable to global banks and capable of competing effectively in India and globally,” Vijaya Bank had said. (With agency inputs)