As per media reports, the Cabinet has approved the merger of Dena Bank and Vijaya Bank with Bank of Baroda on 2nd January 2019. This merger will be effective from April 1st 2019. Once combined, Bank of Baroda will become second largest public sector bank of the country. The government has announced that there will be no retrenchment in jobs as the employees of Dena Bank and Vijaya Bank will be transferred to Bank of Baroda.
Bank of Baroda has also finalised the share swap ration for the merging banks. Dena Bank shareholders will get 110 shares of BoB for every 1000 shares of the existing bank whereas the shareholders in Vijaya Bank would get BoB’s 402 equity shares for every 1000 shares.
BoB is slated to overtake Punjab National Bank and ICICI Bank and would be behind SBI and HDFC Bank only. The government has said that the step was taken to create a strong globally competitive bank.