Vijaya Bank and Dena Bank will merge with Bank of Baroda (BoB) today to create the third-largest lender of the country.
The government-forced merger, announced in September last year, creates the third largest bank in the country after State Bank of India and HDFC Bank.
In a release, BoB chief PS Jayakumar said the new unified entity will work for the success of the amalgamation by effective execution of all the activities to build a stronger organisation and collectively deliver more to the stake holders than that of sum of individual entities.
All customers of Dena Bank, which is under prompt corrective action (PCA) framework of the RBI, will have renewed access to credit facilities immediately.
To make merger a smooth affair, the government last week decided to infuse 5,042 crore rupees in Bank of Baroda to enhance its capital base to meet additional expense.
The Reserve Bank had on Saturday said branches of Dena Bank and Vijaya Bank will function as Bank of Baroda outlets from April following the amalgamation.
Post-amalgamation, the bank will have a 22 per cent market share in Gujarat and 8-10 per cent market share in Maharashtra, Karnataka, Rajasthan and Uttar Pradesh.
This is the second merger of state-run banks in recent years in the banking sector after State Bank had merged five of its associate banks from April 2017.