New Delhi, Mar 12 (IANS); P.S. Jayakumar, Managing Director (MD) and Chief Executive Officer (CEO) of the Bank of Baroda (BoB), is likely to head the merged entity of BoB, Vijaya Bank and Dena Bank.

Jayakumar was given one-year extension till October 12, 2019. Till that period, he is likely to head the merged entity, sources said. A career banker since 1986, Jayakumar has spent over 23 years in Citibank in India and Singapore.

The cabinet had approved the merger of Vijaya Bank and Dena Bank with the BoB in January. The merger will be effective from April 1. After the merger, the BoB would become the third biggest public sector bank.

The merger process, which is in final stages, will see all employees of Vijay Bank and Dena Bank transferred to Bank of Baroda and there are no retrenchment.

There will be some transfers at the level of Executive Directors (ED) to other public sector banks (PSBs) and heads of Dena Bank and Vijaya Bank are likely to be shifted as heads to other banks. The Banks Board Bureau, the banking appointment body, will recommend their postings to the Department of Financial Services.

In September 2018, the 'alternative mechanism' (AM) panel headed by Finance Minister Arun Jaitley had decided to merge Dena Bank and Vijaya Bank with the BoB. The decision was taken to create a stronger and sustainable global-sized lender.

As per the approved plan, after the start of the amalgamation, boards of Vijaya Bank and Dena Bank will stand dissolved.

"Any whole-time director, including the managing director, of Vijaya Bank and Dena Bank, shall cease to hold office and shall be entitled to receive salary and allowances in lieu of the notice in accordance with the applicable law," an earlier BoB statement said.

The entire share capital of Vijaya Bank and Dena Bank, deed or instrument, without any further Act, will stand cancelled, the statement said, adding the shares of both these banks will also stand de-listed from stock exchanges.