Dena Bank, Vijaya Bank to merge with Bank of Baroda after cabinets approval; Here is all you need to know

With the merger, Bank of Baroda will become the third largest bank after State Bank of India and ICICI Bank.

The employees of Dena Bank, Vijaya Bank will now automatically come under BOB. IMAGE: @DDNewsLive/ Twitter

New Delhi: The government on Wednesday approved the merger of Dena Bank and Vijaya Bank with Bank of Baroda (BoB) to make it a globally competitive lender. The official statement by the government states that the merger will come into force on April 1, 2019. Earlier, the government in September last year had announced merger of state-owned Vijaya Bank and Dena Bank, with larger peer Bank of Baroda, aiming to create the third largest lender after SBI and ICICI Bank. With the merger, BoB will become the third largest bank after State Bank of India and ICICI Bank. It is reported that the employees of Dena Bank, Vijaya Bank will now automatically come under BOB.

#Cabinet approves first-ever three way merger in Indian Banking with amalgamation of #VijayaBank, DenaBank and @bankofbaroda pic.twitter.com/RhVpW2OwLe

— Sitanshu Kar (@DG_PIB) January 2, 2019

"There will be no impact on the service conditions of the employees and there will be no retrenchment following the merger," Union Law Minister Ravi Shankar Prasad told reporters about decisions taken by the Union Cabinet. The merger has been designed to make BoB as merged entity, a globally competitive lender, Prasad added.  Bank of Baroda (BoB) also finalised the share swap ratio for merger of Vijaya Bank and Dena Bank with itself. As per the Scheme of Amalgamation, 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.