Understanding Bank Amalgamation in India

The question asks for the exact date when the amalgamation of Vijaya Bank and Dena Bank with Bank of Baroda became effective. This was a major event in the Indian banking sector, consolidating three public sector banks into a single, larger entity.

Based on the information, the amalgamation officially took effect from the beginning of the financial year following the government's announcement and approval.

The effective date for the merger of Vijaya Bank and Dena Bank into Bank of Baroda was April 1, 2019.

This merger was part of the government's strategy to consolidate public sector banks, aiming to create stronger, more efficient banks.

Key Banks Involved in the Amalgamation

• Bank of Baroda (BoB)
• Vijaya Bank
• Dena Bank

Effective Date of Merger

The integration of operations, systems, and branches of Vijaya Bank and Dena Bank into Bank of Baroda was completed, making the new entity effective from the specified date.

Therefore, the correct answer is the date that marks the commencement of the new, unified Bank of Baroda, incorporating the business and operations of Vijaya Bank and Dena Bank.

Revision Table: Bank Amalgamation Details

Additional Information on Bank Mergers

Bank amalgamation or merger is the process where two or more banks combine to form a new, larger entity or one bank absorbs another. The primary objectives behind such mergers often include:

• Creating bigger banks with larger capital base and balance sheets.
• Improving operational efficiency and profitability.
• Reducing the number of public sector banks for better governance and management.
• Strengthening the banking sector to better compete globally.
• Rationalizing branch networks and reducing overlapping operations.

The amalgamation of Vijaya Bank and Dena Bank with Bank of Baroda was one of the initial steps in a series of consolidations that occurred in the Indian public sector banking space around that period.