new delhi mar 31 in a first threeway amalgamation vijaya bank and dena bank will merge with bank of baroda bob from april 1 to create the thirdlargest lender of the country as a result branches of vijaya bank and dena bank will function as bob outlets from monday onwards 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 rbi had said in a statement on saturday to make merger a smooth affair the government last week decided to infuse rs 5042 crore in bob to enhance its capital base to meet additional expense according to the scheme of amalgamation shareholders of vijaya bank will get 402 equity shares of bob for every 1000 shares held in the case of dena bank its shareholders will get 110 shares of bob for every 1000 shares the government in september last year announced the firstever threeway consolidation of banks in india with a combined business of rs 1482 lakh crore making it the thirdlargest bank after state bank of india sbi and icici bank the announcement of the threeway merger was among several reforms initiatives undertaken by financial services secretary rajiv kumar to make public sector banks psbs healthy robust and globally competitive as part of the reform process the government had also announced transfer of majority 51 per cent stake to life insurance corporation lic in idbi bank in august last year to transform the mumbaibased lender besides the department of financial services made a record capital infusion of rs 106 lakh crore in the psbs in the current fiscal as a result five public sector banks including bank of india corporation bank and allahabad bank were out of the prompt corrective action framework of the rbi earlier this year nonperforming assets npas have shown negative trend in 201819 and have reduced by rs 23860 crore between aprilseptember 2018 following the merger the number of psbs will come down to 18 announcing the merger finance minister arun jaitley had said the consolidation will help create a strong globally competitive bank with economies of scale and enable realisation of wideranging synergies the merged entity will have better financial strength financial service secretary kumar had said adding that its net npa ratio will be at 571 per cent significantly better than psbs average of 1213 per cent besides provision coverage ratio would be better at 675 per cent against an average of 637 per cent and the costtoincome ratio of the combined entity would come down to 4894 per cent as compared to average of 5392 per cent he had said last year dp hrs