Dena Bank board okays merger with Bank of Baroda, Vijaya Bank
Mumbai, Sep 24 : The Dena Bank board on Monday approved the merger proposal with Bank of Baroda and Vijaya Bank proposed by the government last week.
The government last Monday announced the merger of three state-run banks -- Dena Bank, Vijaya Bank and Bank of Baroda -- that will make it the country's third-largest bank with a combined business of Rs 14.82 lakh crore.
In a stock exchange filing, Dena Bank, the smallest of the three banks proposed to be merged, said the consolidation would enable creation of a bank with business scale comparable to global banks and capable of competing effectively in India and globally.
Dena Bank has a total business size of Rs 1.73 lakh crore and is also under the Prompt Corrective Action (PCA) framework of the Reserve Bank of India (RBI) on account of its high non-performing assets (NPAs), or bad loans, which for the Indian banking system as a whole have crossed the staggering level of Rs 10 lakh crore.
"To be more efficient in the changing environment, the banks in the public sector space need to be bigger to meet the credit needs of a growing economy, absorb shocks and have the capacity to raise resources without depending unduly on the exchequer.
"Consolidation would enable creation of a bank with business scale comparable to global banks and capable of competing effectively in India and globally," the filing said.
"Amalgamation of our Bank with Bank of Baroda and Vijaya Bank would result in a strong amalgamated bank, equipped with financial cushion to deal with post-amalgamation requirements during the stabilisation phase."
While making the merger proposal last week, Finance Minister Arun Jailtey said the consolidated entity's capacity to absorb a weaker bank guided the decision "to propose this merger to the boards".
The government said the amalgamated entity will have a net NPA ratio at 5.71 per cent, which is significantly better than the public sector banks' (PSBs) average of 12.13 per cent, and declining further.
"The combined business of amalgamated entities would make it second-largest PSB of the country," Dena Bank said.
This is the second such exercise in the last 18 months. In the previous mega merger, five associate banks and the Bharatiya Mahila Bank became part of the state-run State Bank of India on April 1, 2017, making the country's largest lender among the world's top 50 banks.
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Uncompromising stand against Bangladesh-origin Muslims swayed votes for NDA: Himanta
Guwahati (PTI): Assam Chief Minister Himanta Biswa Sarma on Tuesday asserted that his government's "uncompromising stand" in taking steps against Bangladesh-origin Muslims swayed people in favour of the BJP-led NDA in this year's assembly elections, resulting in the alliance securing a two-thirds majority.
He maintained that the NDA's win was a victory for the Assamese indigenous people and affirmed continuing developmental work in the state.
Addressing a press conference, Sarma said, "The double-engine government and unprecedented development the state witnessed in the last five years are among the main reasons for our victory."
"We had assured of securing the Assamese 'jati' (community) and took steps to deliver it. Assam progressed in the cultural and economic sectors. Our uncompromising stand against Bangladesh-origin Muslims also had an impact," he said.
The NDA swept to a third successive term in the state by securing 102 seats in the 126-member state assembly. The BJP won 82 seats, while its allies AGP and Bodoland People's Front bagged 10 each.
On Sarma predicting nearly exact numbers for the alliance before the results, he said the assessment was based on his connect with the people.
"I visited every assembly segment thrice before elections. I have a good mass connect system, which helped in my assessment," he said.
Sarma claimed that recommendations of the Justice (retd) Biplab Sharma committee on Clause 6 of the Assam Accord, which deals with constitutional safeguards for the indigenous Assamese population, were implemented by his government.
"It was because of it that the Assamese people won yesterday. It was not just a BJP victory," he asserted.
The CM claimed the NDA secured the support of all sections of people, including Gen Z, which was evident in the young faces fielded by the BJP emerging victorious.
He dismissed the charge that the BJP has an "outsider" among its MLAs, referring to Guwahati Central legislator-elect Vijay Gupta.
"Vijay Gupta is an Assamese. If he is a Bihari, we (ancestors) also came from Kannauj. We all have come from different parts. Mongoloids came from outside, Aryans came from outside. This outsider narrative has been created by you all (media)," Sarma said.
On the Congress' poor poll performance, he maintained that there were very few people in the opposition party who understood the sentiments of the Assamese people.
Otherwise, the Congress would not have brought singer Zubeen Garg's name in its manifesto or levied allegations against an Assamese woman, Sarma added, referring to the opposition party's charges of multiple passports and undisclosed foreign investments of his wife.
The CM also maintained that Raijor Dal could have won four-five seats had it not joined hands with the Congress.
The Congress and Akhil Gogoi-led Raijor Dal were part of a six-party opposition alliance that fought the elections together. Congress won 19 seats and Raijor Dal two, with the other allies drawing a blank.
"If Akhil Gogoi had not made the mistake, Sherman Ali Ahmed would have been his MLA today," Sarma said, referring to the expelled Congress leader who won as a TMC candidate after Raijor Dal refused him a ticket owing to the alliance.
On Gogoi being the only opposition MLA to win from a Hindu-majority seat, Sarma said, "It is the people of Sibsagar who decided who will represent them. On my part, it was the only Hindu majority seat where I didn't go to campaign."
"Akhil Gogoi should be kept in the assembly, else he will create chaos on the streets with his protests," Sarma said.
He also claimed that Gogoi had failed to make a single serious speech in the assembly during his first tenure as MLA and dubbed the Raijor Dal president a "comic relief" when the proceedings get dull.
