Dena Bank and Vijaya Bank merges with Bank of Baroda; will be effective from April 1
The Bank of Baroda proposed a merger with Dena Bank and Vijaya Bank which will be affected from April 1. The amalgamation plan of the government for these state-owned banks has already got all the necessary approvals from the regulators. The Bank of Baroda also decided to issue and allot equity shares to Dena Bank and Vijaya Bank on March 11.
This scheme has been named as ‘ Amalgamation of Vijaya Bank and Dena Bank with the Bank of Baroda.’ According to this scheme of amalgamation, shareholders of Dena Bank will get 110 equity shares of Bank of Baroda for every 1000 equity shares held. Similarly, the shareholders of Vijaya Bank will get 402 equity shares of BOB for every 1000 equity shares.
After the launch of the amalgamation scheme, the boards of Dena Bank and Vijaya Bank will stand dissolved, and entire share capital of these banks will stand canceled, and the share of these banks will stand delisted from stock exchanges. This merger will allow the combined entity under BoB by giving more lending power and giving it a global competitive identity. There will be no effect on employees services and working conditions, and no reduction will be made as per the approved plan.