Branches of Vijaya, Dena Bank to operate as outlets of Bank of Baroda
The Reserve Bank of India (RBI) has stated that all branches of public sector lenders Vijaya Bank and Dena Bank will function as branches of Bank of Baroda (BoB) from April 1, 2019, and the proposed merger Bank of Baroda with Dena and Vijaya Bank will be affected from April 1.
Plan of Merger
As per the proposed merger plan, shareholders of Vijaya Bank will get 402 equity shares of BoB for every 1,000 shares held and the shareholders of Dena Bank will receive 110 equity shares of BoB for every 1,000 equity shares held.
The boards of Vijaya Bank and Dena Bank will stand dissolved. The entire share capital of Vijaya Bank and Dena Bank will stand cancelled and the shares of both these banks will also stand delisted from stock exchanges.
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.
The consolidated bank will have over 9,500 branches, 13,400 ATMs, 85,000 employees to serve 12 crore customers. The bank will have a business mix of Rs 15 lakh crore of balance sheet, with deposits and advances of Rs 8.75 lakh crore and Rs 6.25 lakh crore, respectively.
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Month: Current Affairs - April, 2019