Vijaya Bank on Thursday said it did not expect any issues with regards to the valuation or swap ratios.
The board of Bank of Baroda (BoB) on Wednesday approved the swap ratio for the proposed merger of Vijaya Bank and Dena Bank with itself. As per the Scheme of Amalgamation, shareholders of Vijaya Bank will get 402 equity shares of BoB for every 1,000 shares held. In case of Dena Bank, its shareholders will get 110 shares for every 1,000 shares of BoB.
RA Sankara Narayanan, managing director and CEO of Vijaya Bank said the swap ratio has been decided through fair and transparent process.
He said that any grievances will be addressed by a committee of retired judge and two experts, which has been formed for that purpose. He, however, does not expect any issues with respect to valuation or swap ratio.
The combined business will be Rs 16.5 lakh crore and there is good potential to grow that, he said, adding that it will be the second biggest public sector bank.
As far as operations are concerned, he said the staff from clerical to general manager level will be fitted according to their date of joining, seniority, promotions and there won’t be any issues as far as regular officers of the bank are concerned.