Before the merger, the government will pour Rs 5,042 crore in the Bank of Baroda.

Bank of Baroda.
Bank of Baroda.
The central government has decided to infuse Rs 5,042 crore in the Bank of Baroda (BOB). This capital will be deposited before the merger of Vijaya Bank and Dena Bank of Bank of Baroda. The plan to merge Dena Bank and Vijaya Bank with Bank of Baroda will come into effect from 1st April.

Bank of Baroda said in the information given to the stock exchanges, "The Finance Ministry has informed about the decision to infuse capital of Rs 5,042 crore on Wednesday, through the preferential allocation of the bank's equity shares (special securities / bonds). It will be in the form of government investment. " According to the plan of merger, Vijaya Bank's shareholders will get 402 shares of Bank of Baroda for every 1000 shares. At the same time, Dena Bank shareholders will get 110 shares of Bank of Baroda in exchange for 1,000 shares.

Explain that the government had announced the merger of Vijaya Bank and Dena Bank with Bank of Baroda in September last year. After this merger, Bank of Baroda will become the third largest bank in the country. Earlier, State Bank of India and ICICI Bank came. After the merger, Bank of Baroda will have a total of 9401 bank branches and total 13432 ATMs. However, due to this merger, employees working in Dena Bank or Vijaya Bank will not be cut off. In this regard, the government has also been assured.

What will be the impact on customers

According to the bank expert, merger and Vijaya Bank customers may have some problems. According to Expert, it is possible to gradually change the bank's check book, account number or customer ID. According to GS Bindra, former Chief General Manager of Punjab & Sind Bank, banks can change the IFSC code of the branches after the merger. However, the final decision on these changes will be decided by the board.
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