The Bank of Baroda became the third largest bank of the country after Vijaya Bank and Dena Bank merged with it on Monday.
Later, the Bank of Baroda issued equity shares to the eligible shareholders of the Vijaya Bank and the Dena Bank.
The Vijaya Bank was allotted 52,42,00,772 equity shares while the Dena Bank was given 24,84,51,166 equity shares by the merged entity. The equity shares will either be credited to the Demat Accounts or Share Certificates will be dispatched to the eligible shareholders of the two banks, the Bank of Baroda said in a BSE listing.
This was the first-ever three-way merger of banks in India. With the amalgamation, all branches of the Dena Bank and the Vijaya Bank have started functioning as that of the Bank of Baroda. The businesses and permanent and regular employees of the Vijaya Bank and the Dena Bank have been transferred to the Bank of Baroda.
The Government has announced the merger of the three banks in September last year. Prior to this, the Centre had also merged the five associate banks — State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore and State Bank of Hyderabad and the Bharatiya Mahila Bank — into the State Bank of India effective April, 2017.
The merger was announced in order to tackle lakhs of crores of bad loans plaguing the banking sector and revive credit growth. Dena Bank is among the five PSU banks kept under PCA due to losses and NPAs. (UNI)
