The government approved the merger of Dena Bank and Vijaya Bank with Bank of Baroda (BoB) on Wednesday, to make it a globally competitive lender.

It may be noted that with the merger, BoB will become the third largest bank after State Bank of India and ICICI Bank.

Speaking to the media about decisions taken by the Union Cabinet, Union Law Minister Ravi Shankar Prasad said, "There will be no impact on the service conditions of the employees and there will be no retrenchment following the merger".

The merger has been designed to make BoB as merged entity, a globally competitive lender, Prasad added.