After the recent merger of two former public sector banks, Vijaya Bank and Dena Bank into Bank of Baroda, the BoB is now the second largest public sector bank of the country. It now has 9,500 branches and 85,000 employees with a business mix of more than Rs.15 lakh crore. It is reported that the BoB will protect the interests of all the employees and customers. It is also stated that the BoB will focus on the operational costs, customer satisfaction and will try to maximize profit. Historically, the experience of bank mergers or amalgamations in India is mixed. In most cases, improvement was not much. Even the recent merger of associated banks of the State Bank of India into the SBI has not been very satisfactory. A bank has to do its business in a complex environment where domestic and international economic factors influence it. Even political interference is not absent. Now, private and public sector banks are doing business in a common market. Practically, these two categories do not do their jobs in the same way. Therefore, the BOB faces several challenges in the days to come. There are many big banks that have either liquidated or face great financial trouble. Amalgamation cannot be an end in itself, Some of the challenges are internal to the bank and same are external to it Some of the internal challenges, as has been pointed out, are first, Dena Bank and BoB has a similar background and culture, which can be takes as the old Gujarati culture. But Vijaya Bank came from a different milieu. So, some cultural shock in human resources development is expected Second, Dena Bank and Vijaya Bank had a huge baggage of NPA. Third, Dena Bank and Vijaya Bank had a large exposer to trade finance. In this sector, asset recovery is more difficult. Fourth amalgamation may not give any geographical advantage as these three banks have narrow coverage India's north and east regions.