This marks the first-ever three way amalgamation in the country’s banking sector.

The Cabinet Committee of Economic Affairs on Wednesday approved the merger of state-run Vijaya Bank, Bank of Baroda and Dena Bank. This marks the first-ever three -way merger in India’s banking sector, to create the country’s second largest public sector lender and third largest overall.

Here are five things to know:

1. The government said in a statement that as per the scheme of amalgamation, Bank of Baroda will be the transferee bank while the other two public sector banks will be transferor banks. That means the businesses of Vijaya Bank and Dena Bank will be transferred to Bank of Baroda.

2. The undertakings owned by Vijaya Bank and Dena Bank that will be transferred to the third state-run lender will include assets, liabilities, rights, titles, claims, licenses, approvals, privileges and properties.

Courtesy by : NDTV