SC refuses to stay merger of Vijaya, Dena banks with BOB
Clearing decks for the scheduled merger of three public sector lenders -- Vijaya Bank, Dena Bank and Bank of Baroda -- the Supreme Court on Thursday refused to stay the amalgamation.
The top court dismissed the applications filed by several bank officers' associations for staying the merger, effective April 1.
The proposed amalgamation will make Bank of Baroda, which will merge the other two lenders with itself, the second largest public sector bank after State Bank of India in place of Punjab National Bank.
A bench of Justices R F Nariman and Vineet Sharan said, "All interlocutory applications seeking stay are dismissed".
At the outset, senior advocate Shyam Divan, appearing for bank officers associations, said that there were several flaws in the decision taken for merger of three banks as there was no effective consultation or concurrence with the Reserve Bank of India on the issue.
He said that even the board of directors of the banks were not adequately constituted to take a ...