Vijaya Bank and Dena Bank to get merge with Bank of Baroda from April 1: How it can affect us?
Public sector lenders Vijaya Bank and Dena Bank will get merge with Bank of Baroda from April 1. Notably, the government has decided to infuse Rs.5, 402 crores ahead of the merger. The Finance Ministry conveyed its decision of infusing Rs.5, 402 crores in BOB on Wednesday through an official notification.
How capital infusion will take place?
The capital infusion will take place by way of preferential allotment of equity shares (Special securities /bonds) of the bank during FY2018- 19, as the government’s investment, the notification stated.
As per the scheme of Amalgamation, shareholders of Vijaya Bank will get 402 equity shares of BOB for every 1,000 shares held. Talking about Dena Bank, its shareholders will get 110 shares for every 1,000 shares of BOB.
Notably, the government in September last year announced about the merger of Vijaya Bank and Dena Bank with BOB, aiming to create third-largest lender after SBI and ICICI Bank.
How will it affect customers?
- Customers could get a new Account number and new customer ID
- Customers who will get new account number or IFSC code, they would be required to update their details in the Income Tax department, Insurance Companies, National Pension Scheme, etc.
- New debit card and credit card would be issued to customers
- There would be no change in the interest on Fixed Deposit and Recurring Deposit
- It is expected that few branches will shut down and customers would be required to visit new branches.
It will third-largest lender in India
After merging Dena Bank and Vijaya Bank, BOB will become the third largest lender in India after SBI and ICCI Bank. Its total business would be now of more than 15.4 Lakh
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