Modi to merge three major bank making country's largest bank

Modi Government is going to take another step towards the process of merger of banks. This time the government has decided to merge Dena Bank, Vijaya Bank and Bank of Baroda.

Announcing the plan, Finance Minister Arun Jaitley said that this will strengthen the bank and its ability to provide credit will increase. Explaining the reasons for the merger, he said the investment of the companies is being affected due to the weakening of the banks' debt position.

The government has a majority stake in 21 banks. These banks have more than two-thirds of the bank's assets in Asia's third largest economy. However, these public banks have a large share in the trapped debt.

The merger of the banks will lead to be the third largest bank, with strong economy. In the case of networks, low-cost deposits and subsidiary units, there will be better coordination. He said that the interests of the employees and brand equity will be preserved. Capital support of Dena Bank, Vijaya Bank and Bank of Baroda will be ensured. The three banks will continue to work independently after the merger.