Vijaya and Dena Bank Merge into Bank of Baroda from April 1, will Become the Country’s Third Largest Bank

New Delhi : Two government banks Vijaya Bank and Dena Bank will merge in Bank of Baroda from 1st April. Bank of Baroda will become the third largest bank in the country after the merger of these two banks. After the merger, all branches of Vijaya Bank and Dena Bank will start working as branches of Bank of Baroda from Monday.

In a statement on Saturday, the Reserve Bank said that consumers of Vijaya Bank and Dena Bank will be considered as consumers of Bank of Baroda from 1st April. The central government had taken a decision last week to pay the Bank of Baroda Rs 5,042 crore to compensate the additional expenditure.

Under the merger scheme, Vijaya Bank’s shareholders will get 402 shares of Bank of Baroda instead of every 1000 shares. Dena Bank shareholders will get 110 shares of Bank of Baroda instead of each 1,000 shares.

After the merger, the joint venture business will be worth Rs 14.82 lakh crore. It will become the country’s third largest bank after State Bank of India and ICICI Bank. After the merger, the number of government banks in the country will be reduced to 18 only.

Several important initiatives were taken during the financial year ending March 31, 2019 in the banking sector of the country. With the merger of Vijaya Bank and Dena Bank in Bank of Baroda, 51% of the government’s share in government sector IDBI Bank was transferred to the Life Insurance Corporation (LIC).

During the year, the department of finance services also put a record Rs 1.06 lakh crore in public sector banks. As a result, 5 Bank Reserve Bank of India, including Public Sector Bank of India, Corporation Bank, Allahabad Bank, came out with immediate corrective action surveillance.

During this period, the non-performing assets (NPA) of banks decreased by Rs 23,860 crore in the April-September quarter of 2018-19.