As per the latest report, the cabinet has passed the merger between all three BoB Dena and Vijaya Bank on 2nd. January 2019. It is expected that the merger will get effective from April 1st. 2019. Also, Bank of Borada will be one of the second largest public sector banks after combining with Vijaya and Dena Bank. Last year in 2018, on 17th. September all three BoB Dena and Vijaya bank have sent a merger proposal to the government.
Another declaration done by government is that there will be no retrenchment in jobs as the employees of both Vijaya and Dena bank will be transferred to BOB. Bank of Baroda bank has finalized the share swap ration for both merging parties. Dena Bank will get 110 shares of Bank of Borada for every 1000 shares of the existing bank. However, a shareholder in Vijaya bank would get Bank of Baroda’s 402 equity shares for every 1000 shares.
BoB is slated to overtake PNB and ICICI Bank & would be behind HDFC Bank and State Bank of India only. The move was explained by the government, by saying that the step is taken in order to create a strong globally competitive bank. It is expected that step will leave a good impact on the Indian economy.