Dena Bank, Vijaya Bank merger with BoB to be effective April 1

Further, BoB's board has fixed March 11, 2019, as the record date for issuing and allotting its equity shares to the shareholders of Vijaya Bank and Dena Bank.

Feb 21, 2019 04:02 IST India Infoline News Service

Merger
According to a PTI report, the merger of Bank of Baroda with Dena Bank and Vijaya Bank would be effective from April 1 as per the scheme of amalgamation approved by the government.

Further, BoB's board has fixed March 11, 2019, as the record date for issuing and allotting its equity shares to the shareholders of Vijaya Bank and Dena Bank.

As per the Scheme of Amalgamation, shareholders of Vijaya Bank will get 402 equity shares of BoB for every 1,000 shares held. In case of Dena Bank, its shareholders will get 110 shares for every 1,000 shares of BoB.

This scheme may be called the "Amalgamation of Vijaya Bank and Dena Bank with Bank of Baroda Scheme, 2019," BoB said citing the government notification. "It (the amalgamation) shall come into force on the 1st day of April, 2019," it added.

The government, in September 2018, announced the merger of PSUs Vijaya Bank and Dena Bank with their larger peer Bank of Baroda, in a pursuit to create the third largest lender after SBI and ICICI Bank.

Reacting to the news, shares of Dena Bank were trading at Rs11.25 up by Rs0.28 or 2.55% from its previous closing of Rs10.97 on the BSE.

Vijaya Bank is currently trading at Rs41 up by Rs1 or 2.5% from its previous closing of Rs40 on the BSE.

Bank of Baroda is currently trading at Rs103 down by Rs0.05 or 0.05% from its previous closing of Rs103.05 on the BSE.

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