New Delhi, Jan 2 (IANS) The Union cabinet on Wednesday approved the merger of public sector lenders Dena Bank, Vijaya Bank with Bank of Baroda (BoB).

According to the Union Minister Ravi Shankar Prasad, the merger will make BoB the third largest bank in the country and a "globally competitive entity".

The minister said there will be no retrenchment of employees as the employees of Dena and Vijaya banks will be transferred to BoB.

--IANS rv-bc-rrb/prs