Bank of Baroda will become the second-largest public sector bank after State Bank of India from today, post its amalgamation with Bengaluru-based Vijaya Bank and Mumbai-based Dena Bank.
“All the branches of Vijaya Bank and Dena Bank will function as branches of Bank of Baroda with effect from April 1, 2019,” Reserve Bank of India said in a notification on March 30, 2019.
Customers, including depositors of Vijaya Bank and Dena Bank, will be treated as customers of Bank of Baroda with effect from April 1.
The consolidated entity will have a wider geographical reach with over 9,500 branches, 13,400 ATMs, 85,000 employees and 120 million customers.
The combined entity will have a business mix of Rs.15 lakh crore with deposits and advances at Rs.8.75 lakh crore and Rs.6.25 lakh crore, respectively.
The bank will have a 22% market share in Gujarat and between 8-10% market share in key states of Maharashtra, Karnataka, Rajasthan and Uttar Pradesh.
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 Bank of Baroda for every 1,000 shares held.
“The interoperability of key banking services across all branches would be introduced by end-April 2019, the scope of which will be expanded gradually. The IT integration is expected to be completed over a period of 12-18 months when customer accounts of all three banks will be migrated to a single core banking system,” the bank said.