Branches of Vijaya, Dena Bank to function as BoB outlets from April 1: RBI
Earlier this week, government decided to infuse Rs 5,042 crore in BoB to enhance its capital base ahead of merger.
Mumbai: Branches of Vijaya Bank and Dena Bank will function as Bank of Baroda outlets from April 1, following the amalgamation of the two lenders with the latter, the RBI said on Saturday.
The merger of Vijaya Bank and Dena Bank with Bank of Baroda, will be effective from April 1, 2019.
"Consequently, all branches of Vijaya Bank and Dena Bank will function as branches of Bank of Baroda from April 1, 2019. Customers, including depositors of Vijaya Bank and Dena Bank will be treated as customers of Bank of Baroda with effect from April 1, 2019, " the Reserve Bank of India said in a statement.
Earlier this week, 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.
The government in September last year had announced merger of Vijaya Bank and Dena Bank with Bank of Baroda, aiming to create the third-largest lender after the SBI and ICICI Bank.