On January 2, 2018 Cabinet approves amalgamation of Vijaya, Dena and Bank of Baroda wherein Vijaya Bank and Dena Bank would act as transferor Banks and Bank of Baroda as the transferee Bank. The respective scheme will come into force from 01.04.2019.
Govt. further clarifies that all the undertaking of Vijaya Bank and Dena Bank (transferor banks) inter alia, all business, assets, rights, titles, claims, licenses, approvals and other privileges and all property, all borrowings, liabilities and obligations would be transferred as an on going concern and would be vested in the Bank of Baroda (transferee bank). This amalgamation would not bring in any changes in the employment structure of the transferor banks. It has been clarified that every permanent and regular officer or employee of the transferor banks would become an officer or employee and would be holding his office or service therein in the transferee bank such that the pay and allowance offered to the employees/officers of transferor banks would not be less favourable as compared to what they would have drawn in the respective transferor bank.
In reference to the shareholders, the transferee bank will issue shares to the shareholders of transferor banks as per share exchange ratio. Shareholders of the transferee bank and transferor banks shall be entitled to raise their grievances, if any, in relation to the share exchange ratio, through an expert committee.