Pune: With the amalgamation of Bank of Baroda, Vijaya Bank and Dena Bank coming into effect on April 1 (Monday), Bank of Baroda (BoB) has become India’s second largest public sector bank.
Since the time the ‘in-principle’ approval to the amalgamation was granted by the boards of the three banks in end-September 2018, the process has been completed in record time.
As per notification dated March 30, 2019, by the Reserve Bank of India (RBI), all branches of Vijaya Bank and Dena Bank will function as branches of Bank of Baroda from April 1, 2019.
Customers, including depositors of Vijaya Bank and Dena Bank, will be treated as customers of BoB with effect from the said date.
The consolidated bank
The consolidated bank will be the second largest public sector bank in the country. It will have a wider geographical reach with 9,500+ branches, 13,400+ ATMs, 85,000+ employees serving 120 million+ customers and business mix of Rs15 lakh+ crore with deposits and advances of Rs 8.75 lakh+ crore, and Rs 6.25 lakh+ crore, respectively.
The complementary branch presence will add to the network in western and southern states viz Maharashtra, Gujarat, Kerala, Tamil Nadu, Karnataka and Andhra Pradesh.
The bank will have a 22 per cent market share in Gujarat and between 8 to 10 per cent market share in key states of Maharashtra, Karnataka, Rajasthan and Uttar Pradesh. Commenting on the occasion, Bank of Baroda MD and CEO PS Jayakumar said, “We are extremely pleased that Bank of Baroda, Vijaya Bank and Dena Bank are coming together to create the second largest bank in terms of network and customer base.
The customers of Dena Bank will be able to avail credit facilities immediately. We would use this unique opportunity to leverage the rich legacy of three banks to build a modern and world-class banking institution. Thanks to Sankara Narayanan and Karnam Sekar, MDs and CEOs of the two amalgamating banks, for facilitating the seamless and frictionless transition.”
- This is the first three-way consolidation of banks in India.
- The combined bank to have 9,500+ branches, 13400+ ATMs, 85,000+ employees, who will serve 120 million+ customers with a business mix of Rs15 lakh+ crore.
- The customers will benefit from wider reach and diverse bouquet of products and services.
- There will be a significant cost and revenue synergies.
- The interest of all employees will be protected.