New Delhi, The Union Cabinet on Wednesday cleared the merger of Bank of Baroda, Vijaya Bank and Dena Bank.

The Bank of Baroda would be the transferee bank while Vijaya Bank and Dena Bank would be transferor banks, Union Minister Ravi Shankar Prasad told a press conference after the Cabinet meet.

Mr Prasad said the merger would come into force from new financial year April 1, 2019.

The Cabinet was held under the chairmanship of Prime Minister Narendra Modi here.