Mumbai, March 31: Vijaya Bank and Dena Bank branches will function as Bank of Baroda outlets from April 1, 2019. The Reserve Bank of India (RBI), the country's central bank, announced on Saturday the merger of Vijaya Bank and Dena Bank branches into the Bank of Baroda. After the merger, the Bank of Baroda (BoB) will become the third largest lender in India after the SBI and the ICICI bank. RBI Imposes Monetary Penalty on SBI, Bank of Baroda, Corporation Bank and Union Bank of India For Non-Compliance.

The merger of the banks will be effective from the new financial year, April 1, 2019. Vijaya Bank, Dena Bank, Bank of Baroda to be Merged: What Will Happen to Cheque Book, Passbook and Account Number of Depositors.

The Reserve Bank of India said in a statement that “Consequently, all branches of Vijaya Bank and Dena Bank will function as branches of Bank of Baroda from April 1, 2019. Customers, including depositors of Vijaya Bank and Dena Bank will be treated as customers of Bank of Baroda with effect from April 1, 2019.”

The government recently infused and increased the reserves of the Bank of Baroda by Rs 5,042 crore in order to enhance the capital base of the Bank of Baroda.

According to the Scheme of Amalgamation, shareholders of Vijaya Bank will get 402 equity shares of BoB for every 1,000 shares held.

Whereas Dena Bank shareholders will receive 110 shares of BoB for every 1,000 shares they held. The government had announced in September 2018 about the merger of Vijaya Bank and Dena Bank with Bank of Baroda, aiming to create the third-largest lender after the SBI and ICICI Bank.

(The above story first appeared on LatestLY on Mar 31, 2019 09:39 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).