The Union Cabinet, chaired by Prime Minister Narendra Modi, on January 2, 2019, approved the ‘Scheme of Amalgamation’ for the merger of Bank of Baroda, Vijaya Bank, and Dena Bank.
The amalgamation will be the first-ever three-way consolidation of banks in India. The merger of Bank of Baroda, Dena Bank, and Vijaya Bank was proposed by the Union Finance Ministry on September 17, 2018.
The amalgamated entity will be India’s second largest Public Sector Bank and India’s third-largest bank with a total business of more than Rs 14.82 lakh crore.
1. Vijaya Bank and Dena Bank are the Transferor Banks and the Bank of Baroda is the Transferee Bank.
2. The Scheme of Amalgamation will come into force on April 1, 2019.
3. The undertakings of the transferor banks will be transferred to the transferee bank, including all business, assets, rights, titles, claims, licenses, approvals and all property, all borrowings, liabilities, and obligations.
4. Every permanent and regular officer or employee of the transferor banks will become an officer or employee of the transferee bank.
5. The pay and allowances offered to the employees of transferor banks shall not be less favorable as compared to what they are drawing in their respective transferor bank.
6. The Board of the transferee bank, that is Bank of Baroda, will ensure that the interests of all transferring employees and officers of the transferor bank are protected.
7. The transferee bank will issue shares to the shareholders of transferor banks as per share exchange ratio.
8. Shareholders of the transferee bank and transferor banks shall be entitled to raise their grievances, if any, in relation to the share exchange ratio, through an expert committee.