Bank of Baroda (BoB) holds approximately 98% of shares of Nainital Bank,  having only 139 branches in 5 states with total business of Rs. 10000 + crore and approximately 1000 employees. Merger will be in line with present Bank Consolidation Policy of government. It will enable the customers of Nainital Bank to get benefits of high technology and large basket of products of BoB whereas BoB will get high quality business with net NPA only 1.14% with strong financials and skilled manpower. It will save large investment required to upgrade technology of Nainital Bank since without upgrading technology this small bank may lose its competitive strength in future thereby causing great loss to regional economy of Uttarakhand and western Uttar Pradesh. The employees of Nainital Bank will also benefit with better service conditions in BoB. The merger will be win-win situation for both banks.