The union cabinet on Wednesday approved the proposal of merger of Vijay Bank, Dena Bank with Bank of Baroda. The three- way bank merger that happens to be the first of its kind will lead to formation of the largest public sector bank in India after SBI.
Bank of Baroda is the transferee bank while Dena Bank and the Vijaya Bank are the two transferor banks.
The scheme will come into force on APRIL1, 2019, says a government statement.
Government claims, the merger will help create a strong globally competitive bank with economies of scale and enable realisation of wide-ranging synergies.
The amalgamation scheme, as the government claims, is so designed that position, salary and allowance of the regular officers and employees of the transferor banks will not be affected adversely in the new system.
As per the government statement, The transferee bank shall issue shares to the shareholders of transferor banks as per share exchange ratio.
Shareholders of the transferee bank and transferor banks shall be entitled to raise their grievances, if any, in relation to the share exchange ratio, through an expert committee.
UNION CABINET APPROVES MERGES OF VIJAYA BANK, DENA BANK AND BANK OF BARODA