The merger of Bank of Baroda with Vijaya bank and Dena Bank comes in to effect from 1st April two years after the merger of five associate banks with State Bank of India (SBI).
It was first announced in September last year, comes into force from April 1, 2019.
After Merger, Bank of Baroda (BOB) has become country’s third largest lender.
Here are 7 things to know about Vijaya Bank, Dena Bank and Bank Of Baroda merger
What is the requirement of this merger?
This merger comes as part of the central government’s efforts to tackle bad loans worth lakhs of crores, which is plaguing the sector and revive credit growth.
PSU bank consolidation
The Central government is reportedly studying various models of PSU bank consolidation though a concrete decision shall be taken only after the successful merger Bank of Baroda.
Government stake in PSU Banks
The Central government owns majority stakes in 21 PSU banks which is two-thirds of the banking assets in the India.
Transfer of Business and officials
The whole businesses and its related things of Vijaya Bank and Dena Bank will be transferred to Bank of Baroda (BOB). This is to inform you that permanent officials and regular officials of Vijaya Bank and Dena Bank are now transferred to the merged entity Bank of Baroda.
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Third largest PSU bank after SBI and PNB
The three-way merger Bank of Baroda with Vijaya bank and Dena Bank is creating the combined business of Rs. 14,82,422 crore (taking business worth Rs. 1,72,937 crore of Dena Bank and Rs. 2,79,674 crore of Vijaya Bank).
2nd Big Merger after SBI
BOB Merger comes into force 2 years after 5 associate banks merger of State Bank of India (SBI).
Bank of Baroda shares have declined
Bank of Baroda shares have declined 4.7 per cent down since announcement of the merger in September.