The cabinet has approved the merger of state-run Vijaya Bank and Dena Bank with Bank of Baroda (BoB). Karnam Sekar, MD and CEO of Dena Bank, spoke to CNBC-TV18 about the merger.
“This merger ratio was done after a long due process which is accepted in the merger amalgamation market and after the announcement of this by government on September 17, independently all three banks have appointed valuers and over and above the valuers, we have appointed a fairness opinion provider also. Those people have done their work individually and collectively they have sat and discussed among themselves also and then they have arrived at the value. They have gone through three methods, net asset value method, market value method and the comparative company method and they have given appropriate weightage to all these three methods and finally they have arrived at value and the ratio. Then yesterday all three banks have sat and after a long discussion, we have agreed and approved this. So everybody is happy. Because it was a very well thought about process, accepted process and it was done almost one month of analysis of past and future,” Sekar said on Thursday.
“Merged entity will have a structure of MD, ED and whatever is available in PSB. So only one MD will be there. That much is clear and who will be there and who will not be there – government will take a call very soon,” he added.
“There will not be any issue with respect of staff, we have started the process almost two months ago and we have formed all committees of representatives from all three banks and they are working. We have started harmonising the policies also,” said Sekar.
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