Bank of Baroda to become 3rd largest bank |
Three Indian banks namely, Bank of Baroda, Vijaya Bank and Dena Bank will merge in a three way amalgamation with the beginning of the new Financial year on April 1. In order to smoothen the merger of the banks to gain economies of scale and a larger customer base, Government has decided that it will infuse around 730 million dollars into state-owned Bank of Baroda. The merger will create the third largest lender in India after SBI and ICICI Bank. The Reserve Bank of India had said in a statement on Saturday that customers including depositors of Vijaya Bank and Dena Bank will be treated as customers of Bank of Baroda with effect from 1st April 2019. According to the Scheme of Amalgamation, shareholders of Vijaya Bank will get 402 equity shares of Bank of Baroda for every 1,000 shares held. In the case of Dena Bank, its shareholders will get 110 shares of Bank of Baroda for every 1,000 shares. The government in September last year announced the first-ever three-way consolidation of banks in India, with a combined business of 213.6 billion dollars, making it the third-largest bank after State Bank of India and ICICI Bank.
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