Share swap ratio for bank merger cleared

The boards of Bank of Baroda (BoB), Vijaya Bank and Dena Bank, on Wednesday approved the share swap ratio for the proposed merger. Vijaya Bank and Dena Bank shareholders will get 402 and 110 shares of BoB, respectively, for every 1,000 shares held. The Union Cabinet approved the amalgamation of the three banks, with Bank of Baroda as the transferee bank, and Vijaya and Dena as transferor banks. This would mean that the merged entity would be known as the Bank of Baroda. However, bank officials said there would be a new logo of the merged entity to reflect the identity of all the three banks. The merger will come into effect from April 1. “The amalgamation will help create a strong globally competitive bank with economies of scale and enable realisation of wide-ranging synergies,” the Centre said in a statement. The government said every permanent and regular officer or employee of Vijaya and Dena would continue to hold his office or service in the Bank of Baroda. The pay and allowance offered to the staff of Vijaya and Dena would not be less favourable compared to what they would have drawn in their respective banks, it added.

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