Merger of Vijaya bank and Dena bank with Bank of Baroda came effective from today

The merger Vijaya Bank and Dena Bank with Bank of Baroda became effective on today April 1, 2019. This was the first-ever three-way merger in India's banking sector.

With this merger, Bank of Baroda became the India's second largest Public Sector Bank after the SBI and India's third largest lender overall after the SBI and ICICI Banks.

"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 Reserve Bank of India said in a press release.

With this merger now, the number of public sector banks has reduced to 19 from 21.

The Cabinet had approved the merger of Vijaya Bank and Dena Bank with Bank of Baroda on last month.

In September 2018, the government had announced the merger of these three banks as part of its strategy to promote consolidation in the sector marred by loads of non-performing assets.