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From 1st April 2019 onwards, state-run Dena Bank and Vijaya Bank are a part of Bank of Baroda. This would be the first every three-way merger in the history of the Indian banking sector. This merger created the country's second largest public sector after State Bank of India., However, this news on amalgamation was already announced in September, 2018.

In order to run the economy with good scale and operational efficiencies, Finance Minister, Arun Jaitley had served has stressed the need for the merger.

The merger of three state-run banks will have few markable impacts, like;

The merger paved the government to shoot down the worry of piling bad loans in the sector and revive credit growth.

The combined bank will now aim to expand by 9,500 branches, more than 13,400 ATMs with 85,000 employees serving 120 million customers.

Branches will now have the reach to the network in the western, southern and north-eastern regions.

Newly merged Bank of Baroda has new advances and deposit market share of 6.9% and 7.4%, respectively, according to a Motilal Oswal report.

Now, after the amalgamation, the entire business of Vijaya Bank and Dena Bank is transferred to Bank of Baroda. All the officials of these banks irrespective of permanent and regular officials are now transferred to the merged entity.

The new Bank of Baroda will likely to have low-cost deposits and subsidiaries. Improved customer base, market reach, operational efficiency

Bank of Baroda replaced the debt-ridden Punjab National Bank and in becoming the second largest public sector banks (PSBs).

To stabilise the financial sheet of the merged entity and fulfill the credit needs, the government will grant ₹5,042 crore into Bank of Baroda. It will be in the way of equity shares allotment to the bank.

If you are or will be the shareholder of the merged entity, the new share swap ratio will be applicable. As per the new ratio, shareholders will be entitled to get 402 equity shares of Bank of Baroda for every 1,000 equity shares held by Vijaya Bank. For those who have held 1000 shares in Dena Bank, they will receive 110 equity shares of Bank of Baroda.

The total profitability of Bank of Baroda got dragged down by the Net Performing Assets of the other two banks.

Due to this merger, the total number of PSBs will cut down from 21 to 19.

Due to a higher total loan in the retail books of Vijaya Bank, now books of Bank of Baroda has increased to about 20%

To reduce overlapping and economies of scale, some branches are aimed to shut down soon.

Since September after the merger announcement, the share of Bank of Baroda steeped down by 4-4.7%.

Existing customers of Dena Bank and Vijaya Bank need not worry due to the merger. All their accounts will be continued, but with Bank of Baroda. If any changes made to the account and bank policy, all notifications will be timely provided to the respective customers.

In regards to cheque book and ATM card, customers can continue using them. New cards with Bank of Baroda branding will be issued to all customers soon by April 2019.

If you want to deposit cash or cheque then you can visit the branch of your respective bank.

Changes will be seen in existing Quarterly Account Balance limits and charges.

Customers don't have to worry about any shutdown of Dena Bank and Vijaya Bank branches. They can visit any branches. Branches will function as Bank of Baroda from April 1, 2019.

Terms and conditions of loans or other credit facilities will remain the same. However, it will be under the policies of Bank of Baroda, currently, no changes will be made.

For fund transfers between Bank of Baroda, Dena Bank and Vijaya Bank using NEFT or RTGS services, there won't be any charges.

No extra charges in using ATM services in any of the three banks. Charges will be continued to exist over basic services like cash withdrawal, balance enquiry, mini statement and pin change at any of the banks’ ATMs.

The digital banking facilities of all three banks will continue to function as earlier.

I have a saving account with Dena bank. What will be the impact on my account after the Dena-BoB-Vijaya merger?