NEW DELHI: The boards of public lenders Bank of Baroda and Dena Bank on Wednesday approved swap ratio for proposed merger of two PSU banks. In a regulatory filing, Dena Bank said that its shareholders will receive 110 equity shares of Bank of Baroda of face value Rs 2 for every 1,000 shares they held. Vijaya Bank shareholders will get 402 equity shares of Bank of Baroda for every 1,000 shares they held. In September last year, 'Alternative Mechanism' (AM) headed by Finance Minister Arun Jaitley had decided to merge Dena Bank and Vijaya Bank with Bank of Baroda.

The decision was in a bid to create a stronger and sustainable global-sized lender. Post completion of merger with two banks, Bank of Baroda is likely to be resulting entity post-merger and will become third-largest Indian bank, overtaking both Punjab National Bank and ICICI Bank, in terms of assets, but remaining behind State Bank of India and HDFC Bank, Fitch Ratings had said in a September note. A Grievance Redressal Committee headed by Pramod Kade, retired judge of Mumbai High Court, has been set up to address grievances of minority shareholders.