The government has decided to flow Rs. 5042 crore into Bank of Baroda and merge it with two public sector lenders namely Dena Bank and Vijaya Bank. The unification of Dena and Vijaya Bank with Bank of Baroda would be effective from April.
The government last year in September had declared the amalgamation of two banks with Bank of Baroda to make it the third-largest bank after State Bank of India and ICICI Bank Ltd.
The bank in a regulatory filing said, “the capital infusion will be by way of preferential allotment of equity shares (special securities/bonds) of the bank during FY2018-19, as government’s investment.”
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 for every 1,000 shares of BoB.
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