Bank of Baroda third largest bank in the country

Context

  • The merger of Vijaya Bank and Dena Bank with Bank of Baroda, will be effective from April 1, 2019.

Key Facts

  • Branches of Vijaya Bank and Dena Bank will function as Bank of Baroda outlets from April 1, following amalgamation of the two lenders with the latter, the RBI said.
  • The government-forced merger, announced last in September, creates the third largest bank in the country after State Bank of India and HDFC Bank.
  • This is second merger of state-run banks in the recent years in the banking sector after State Bank had merged five of its associate banks- State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore and State Bank of Hyderabad and also Bhartiya Mahila effective April 2017.
  • the government decided to infuse Rs 5,042 crore in BoB to enhance capital base of the lender ahead of the merger. According to the Scheme of Amalgamation, shareholders of Vijaya Bank will get 402 equity shares of BoB for every 1,000 shares held. In the case of Dena Bank, its shareholders will get 110 shares of BoB for every 1,000 shares they held.

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