Union cabinet approves merger of Vijaya Bank and Dena Bank with Bank of Baroda (BoB)
On 2nd January 2019, the Union Cabinet approved the merger of Vijaya Bank and Dena Bank with Bank of Baroda (BoB). With the merger, BoB will become the third largest bank after State Bank of India and ICICI Bank. The move will help create a strong globally competitive bank with economies of scale and enable the realization of wide-ranging synergies, leveraging of networks and low-cost deposits and substantial rise in customer base and operational efficiency. The scheme will come into effect from 1st of April this year. The pay and allowances and services of the employees of all three banks will remain same as earlier. 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.
Category: Government Schemes Current Affairs