How will the merger of Bank of Baroda, Vijaya Bank and Dena bank affect their account holders? - letsdiskuss
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Ramesh Kumar

Marketing Manager | Posted on | Share-Market-Finance


How will the merger of Bank of Baroda, Vijaya Bank and Dena bank affect their account holders?


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Entrepreneur | Posted on


Last year, State Bank of India absorbed 5 associate banks, as well as Bharatiya Mahila Bank. If that is to be taken in consideration, the account holders will have NO problems whatsoever if Bank of Baroda, Vijaya Bank and Dena Bank merges. Back then, the customers – at least the majority of them – enjoyed a smooth transition.

Letsdiskuss  (Courtesy: Mumbai Live) 

Certainly, there could be a few disruptions in the operational efficiency for a small span and some confusions. Away from that, I don’t think you will have any difficulty. And neither will you have to do anything in particular to prepare for this merger. The onus won’t fall on the customers. If they are to update their profile and KYC information, their respective banks will notify them beforehand. 

Besides, after the demonetization fiasco, one can assume that the government will be uber careful in undertaking such measures to ensure maximum convenience to the end customers-cum-voters. Also, I don’t think there would be much of a rush in pushing this banking reform. It will definitely happen post General Election 2019.

Right now, the board members of Bank of Baroda, Vijaya Bank and Dena Bank will meet to discuss on the merger proposal of the government. If they disagree or have objections, there would expectedly be plenty of meetings between them and the government officials and a lot more convincing. Although these meetings would be a complete sham, given the government owns the majority stake in each of these banks. So, there shouldn’t be much of a discussion among the board members. Government can take the sole decision. 

I am glad Bank of Baroda, Vijaya Bank and Dena bank are merging. The move will definitely add to their operational efficiency. The employees there would get more opportunities. Plus, as India’s third largest lender, they could really bring an impactful improvement in the country’s economy. 

Fun Fact: It was Manmohan Singh’s formed committee – who was India’s Finance Minister in 1991 –that recommended such banking reforms where they contested that state-controlled banks should be merged. 

Finally!!!


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