Union Cabinet of India has approved the amalgamation of three best banks a making history in the Indian banking sector. These three banks are Dena Bank, Vijaya Bank and Bank of Baroda.
These banks are state-owned government banks which actual implementation will be in 1st April 2019. There is no impact on the bank customers on their daily transactions and services which are offered to their bank employees said by, union law minister Ravi Shankar Prasad.
Bank of Baroda also finalized share swap ratio for the merger of Vijaya Bank and Dena Bank with itself.
As per the scheme of Amalgamation, Shareholders of Vijaya Bank will get 402equity shares of Bank of Baroda for every 100 shares held. The Indian government in September last year had announced the merger of Dena Bank, Vijaya Bank in Bank of Boroda. Then merged bank will have held India’s largest public sector bank after State Bank of India and will “help to create strong globally competitive bank”, the government said in the statement.
The endeavor’s owned by Vijaya Bank and Dena Bank that will be shifted to the third state-run lender will include assets, liabilities, rights, titles, claims, licenses, approvals, privileges and properties.
The merger will help create a strong, globally competitive bank with economies of scale and enable the realization of inclusive collaborations. The public at large will benefit in terms of boosted access to banking services, the government noted.