The merger of Vijaya Bank and Dena Bank with Bank of Baroda moved a step ahead with the Union Cabinet approving a scheme of amalgamation for the same and the board of the respective banks giving their nod to the share swap ratio.
The scheme will come into force on April 1. The amalgamation will be the first-ever three-way consolidation of banks in India, with the amalgamated entity emerging as the country’s second largest public sector bank, a Cabinet statement said. Vijaya Bank and Dena Bank are transferor banks and BoB is the transferee bank.
The fair equity share exchange (share swap) ratio for the amalgamation is: 402 equity shares of Rs.2 each of BoB for every 1,000 equity shares of Rs.10 each of Vijaya Bank; and 110 equity shares of Rs.2 each of BoB for every 1,000 equity shares of Rs.10 each of Dena Bank.
Every permanent and regular officer or employee of the transferor banks will become an officer or employee and will hold his office or service therein in the transferee bank such that the pay and allowance offered to the employees/officers of transferor banks will not be less favourable as compared to what they would have drawn in the respective transferor bank, it added.