BOB, Vijaya Bank and Dena Bank Merged
After years of speculation and many attempts by government, decision has finally been made to merge Bank of Baroda, Vijaya Bank and Dena Bank to make it the 3rd Largest Bank in India. The merger will make a stronger bank and sustainable to higher lending which was hit highly by worsening NPA situation in the banks.
On 1st April 2017, SBI group was merged into one entity i.e. All SBI associate banks i.e. State Bank of Bikaner and Jaipur, State bank of Mysore, State Bank of Patiala, State bank of Hyderabad and State Bank of Travancore along with Bhartiya Mahila Bank were merged into State bank of India making it the 53rd Largest bank in the world which served quarter of Indian population. SBI merger was smooth in terms of HR management was concerned and things were bank to normal within 3 months of merger. The experience gained from SBI merger encouraged the government to push for less but stronger banks.
How a stronger bank is good for economy?
Indian Banking industry is facing the ballooning NPA trouble. This NPA trouble had affected lending pace of the Indian banking Industry as a total of 11 banks of 20 banks is still under the preview of PCA guidelines of RBI which opposes excessive lending. A stronger bank would mean a stronger base and more lending thus bringing business cheer again in India. This would also help in increasing customer services.
What about the employees?
From the past experiences when SBI merger was done, no major staff issues arised. Staff salaries are same across banking sector (except SBI). and pension schemes being followed remain the same. Finance Minister Sh. Arun Jately announced today ” No employee will face any service conditions which are adverse in nature. The best of the service conditions will apply to them”
What About future vacancies?
When we come to vacancies the golden era of jobs in Indian banking sector is about to come back again. All these black clouds of huge losses and mounting NPA’s will be cleared soon.
What merger would mean for customers?
Initially customers might face some issues, but as government has announced that the 3 banks will work independently till all proceedings are completed, the issues will be less. But one thing is for sure, Customer service and Satisfaction of Indian PSB’s is set to increase.
