AMN / NEW DELHI
With the amalgamation of Vijaya Bank and Dena Bank, the Bank of Baroda BoB has become the third-largest lender of the country today.
The Reserve Bank of India had said in a statement on Saturday that customers including depositors of Vijaya Bank and Dena Bank will be treated as customers of Bank of Baroda with effect from 1st April this year.
To make the merger a smooth affair, the government last week decided to infuse 5,042 crore rupees in Bank of Baroda to enhance its capital base to meet the additional expense.
According to the Scheme of Amalgamation, shareholders of Vijaya Bank will get 402 equity shares of Bank of Baroda for every 1,000 shares held. In the case of Dena Bank, its shareholders will get 110 shares of Bank of Baroda for every 1,000 shares.
The government in September last year announced the first-ever three-way consolidation of banks in India, with a combined business of 14.8 lakh crore rupees, making it the third-largest bank after State Bank of India and ICICI Bank.