New Delhi: As the three-way merger of Dena Bank and Vijaya Bank with Bank of Baroda (BoB) took effect on Monday, BoB became the country’s second largest state-owned lender after the State Bank of India. The total number of public sector banks in India has now come down to 18. The consolidated entity has a business mix of over Rs 15 lakh crore of balance sheet, and its deposits and advances stand at Rs 8.75 lakh crore and Rs 6.25 lakh crore, respectively.
BoB completes share allotment
BoB will now have 13,400 ATMs, over 9,500 branches, 85,000 employees and a customer base of 12 crores. As the merger took place, BoB completed the formalities for allotting shares to the shareholders of Dena Bank and Vijaya Bank. While Vijaya Bank shareholders got 402 equity shares of BoB for every 1,000 shares held, those of Dena Bank got 110 shares of BoB for every 1,000 shares held.
The equity shares were issued and allotted on Monday at approved share exchange ratio pursuant to ‘Amalgamation of Vijaya Bank and Dena Bank with Bank of Baroda Scheme, 2019,’ BoB said in a regulatory filing.
BoB market share in Gujarat will be 22%
After the merger, BoB’s market share in Gujarat will be 22 percent and 8-10 percent in Maharashtra, Karnataka, Rajasthan and Uttar Pradesh, the bank has said. The customers of Dena Bank, which continues to be under Reserve Bank of India’s (RBI) prompt corrective action framework, will have access to credit facilities immediately.
The three-way merger announced by the government in September last year was among the many public sector reform initiatives undertaken by the Centre to improve the financial health of public sector banks (PSBs), make them robust and globally competitive.