Bank of Baroda (BoB) became the second largest state-owned lender after merging Dena Bank and Vijaya Bank into
itself as part of the first three-way amalgamation.
Historical Background of Bank Consolidation in India:
After the wave of economic liberalization, a committee under the chairmanship of Maidavolu Narasimham
(13thGovernor of Reserve Bank of India (RBI) was constituted in 1991 and again in 1998 to recommend reforms
required in banking sector.
Narsimhan Committee 1991 Recommendation:
Structural Reorganizations of the Banking sector :
Narsimhan Committee 1998 Recommendation:
Strengthening Banks in India: It recommended the merger of strong banks which will have ‘multiplier effect’ on the