Dena Bank, Vijaya Bank Merger with BoB to Come into Effect on April 1 – CORPORATE ETHOS

Dena Bank, Vijaya Bank Merger with BoB to Come into Effect on April 1

By: | February 22, 2019
BoB

Feb 22: Bank of Baroda has announced that its merger with Dena Bank and Vijaya Bank will come to effect from April 1. The date is based on the scheme of amalgamation approved by the government.

Meanwhile, reports said that, on March 11, 2019, Bank of Baroda will be allotting equity shares to the shareholders of Vijaya Bank and Dena Bank.

Quoting the government notification, Bank of Baroda stated that the new system can be called the Amalgamation of Vijaya Bank and Dena Bank with Bank of Baroda Scheme. The notification also states that it will be put to practice from April 2019.

As per the Scheme of Amalgamation, Vijaya Bank shareholders will get 402 equity shares of BoB for every 1,000 shares held. When it comes to Dena Bank for every 1,000 shares of BoB, the shareholders will get 110 shares.

In September 2018, the India government announced the announced the merger of state-owned Vijaya Bank and Dena Bank with the Bank of Baroda. The merger aimed to create India’s third largest bank following the first two SBI and ICICI Bank.