Merger of Dena, Vijaya Bank with Bank of Baroda Approved (Download PDF)

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Govt. on 1st JAN 2019, approved the merger of Vijaya Bank, Dena Bank with Bank of Baroda. The merger will allow the combined entity under BoB more lending power. BoB will now have a global competitive identity.

Image Of On A Losing Streak

Image Of On A Losing Streak

Image Of On A Losing Streak

Details About the Merger

  • The merger will come into effect from 1st of April this year.

  • Following the merger of these state-owned banks, BoB will become the third largest bank in India after the State Bank of India and HDFC Bank in terms of assets overtaking the Punjab National Bank & ICICI Bank.

  • This will allow the combined entity under BoB more lending power.

  • All the employees of Dena Bank, Vijaya Bank will now automatically come under BOB.

  • There will be no effect on their service and working conditions, assured the minister, adding that no retrenchment will be done. The pay and allowances and services of the employees of all three banks will remain same as earlier.

  • These three banks had been merged to make BoB a globally competitive financial institution.

  • The government in September last year had announced the merger of these three banks.

  • It was part of the government’s strategy to promote consolidation in the sector marred by loads of non-performing assets (NPAs).

  • However, this is the first three-way merger in the public sector banking space has taken place.

  • Before this, the State Bank of India had merged five of its subsidiary banks with itself and took over Bharatiya Mahila Bank, which secured it a place among the top 50 global lenders.

  • The approval for merger of these three banks comes days after nine bank unions, with close to 1 million employees, held a nation-wide bank strike against the decision.

  • Meanwhile, BoB also finalised a share swap ratio for the merger of Vijaya Bank and Dena Bank with itself.

  • As per the Scheme of Amalgamation, the shareholders of Vijaya Bank will get 402 equity shares of BoB for every 1,000 shares held.

  • In case of Dena Bank, its shareholders will get 110 shares for every 1,000 shares of BoB.

Bank of Baroda

  • Bank of Baroda is an Indian International banking and financial services company headquartered in Vadodara in Gujarat, India.

  • Headquarters: Alkapuri, Vadodara

  • CEO: P. S. Jayakumar (13 Oct 2015–)

Dena Bank

  • Dena Bank is headquartered in Mumbai and it has 1874 branches. The bank was founded in 1938 and the Indian government nationalized it in 1969.

  • CEO: Shri Karnam Sekar (21 Sep 2018–)

  • Headquarters: Mumbai

  • Founders: Choonilal Devkaran Nanjee, Pranlal Devkaran Nanjee

Vijaya Bank

  • Vijaya Bank is a public sector bank with its corporate office in Bangalore, Karnataka, India. It is one of the nationalised banks in India.

  • The bank offers a wide range of financial products and services to customers through its various delivery channels.

  • Headquarters: Bengaluru

  • CEO: R. A. Sankara Narayanan (1 Sep 2017–)

  • Founder: A. B. Shetty

  • Founded: 23 October 1931

  • Owner: Government of India

- Published/Last Modified on: February 5, 2019

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