Bank of Baroda (BoB) on Monday became the second largest state-owned lender after merging Dena Bank and Vijaya Bank into itself as part of the first three-way merging. “All the branches of Vijaya Bank and Dena Bank will function as branches of Bank of Baroda with outcome from April 1, 2019.” RBI said in a notification on March 30, 2019. Customers, including investors of Vijaya Bank and Dena Bank, will be treated as customers of Bank of Baroda from April 1, RBI said in a notification.
The merged entity started its operation with a business mix of over Rs 15 lakh crore of balance sheet, with deposits and advances of Rs 8.75 lakh crore and Rs 6.25 lakh crore, respectively. The bank now has over 9,500 branches, 13,400 ATMs, 85,000 employees to serve 12 crore customers. Meanwhile, BoB completed share allotment to shareholders Dena Bank and Vijaya Bank as per the scheme of amalgamation.
Post merging, the bank will have a 22 % market share in Gujarat and 8-10 % market share in Rajasthan, Maharashtra, Karnataka, and Uttar Pradesh. All customers of Dena Bank, which is under prompt corrective action (PCA) framework of the RBI, will have renewed access to credit facilities immediately.
According to the scheme of consolidation, shareholders of Vijaya Bank will get 402 equity shares of BoB for every 1,000 shares held. In the case of Dena Bank, its shareholders will get 110 shares of BoB for every 1,000 shares held.
Bank of Baroda, Vijaya Bank and Dena Bank are coming together to create the second-largest bank in terms of network and customer base. We would use this unique opportunity to leverage upon the rich legacy of three banks to build a modern and world-class banking institution for our customers, employees, partners, and other stakeholders, P S Jayakumar, MD & CEO, Bank of Baroda, said in a release.