On Wednesday, the Union Cabinet did the imminent—approve the merger of Vijaya Bank and Dena Bank with Bank of Baroda, which will effective from April 1, 2019.
(Courtesy: Mumbai Live)
Also Read :- How will the merger of Bank of Baroda, Vijaya Bank and Dena bank affect their account holders?
The three-way merger is a first-of-its-kind in India, creating country’s second-largest public sector lender, only after State Bank of India (SBI).
While the government has planned well to keep this transition smooth, mergers of this magnitude always end up in mess and uncertainties.
And rightly so. It’s combining three big banks together into one. It is bound to be messy. With a loan book of Rs 7.8 lakh crore, the merged bank will have 9,475 branches and a network of 13,544 ATMs.
(Courtesy: Financial Express)
Coming to your exact question, the government has assured all the employees that there will be no layoff. And all the existing employees of Vijaya Bank and Dena Bank will become part of Bank of Baroda, enjoying the least of the same benefits that they currently do if not more. The government has also ensured that the board of the transferee and transferor banks will ensure goodwill of all their employees.
So, as of right now, there doesn’t seem to be any threat to the tenure and benefits of the employees due to the merger of Vijaya Bank and Dena Bank with Bank of Baroda.
However, this doesn’t mean that’s how the case will be as we move forward to April 1. BUT even when things go bad for the employees, hopefully, the bank’s board will introduce Voluntary Retirement Scheme (VRS) to proper safety for its employees.