Bank of Baroda Now 2nd Largest Public Sector Bank on strength of ‘Power of 3’
Jaipur : From April 1st, 2019, the amalgamation of Bank of Baroda, Vijaya Bank and Dena Bank comes into effect to create 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 Reserve Bank of India, 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 Bank of Baroda with effect from said date.
The consolidated bank will be the second largest public sector bank in the country. It will have a wider geographical reach with more then 9.5k branches, 13.4k ATMs, 85k employees serving 120 million customers and business mix of INR 15 lakh crore with deposits and advances of INR 8.75 lakh crore, and INR 6.25 lakh crore, respectively.
The Bank plans to build upon the strengths of the three banks, their synergies and scale up the operations by deepening relations with a wider customer base. The complementary branch presence will add to the network in western and southern states – Maharashtra, Gujarat, Kerala, Tamil Nadu, Karnataka and Andhra Pradesh. The Bank will have a 22% market share in Gujarat and between 8 to 10% market share in key states of Maharashtra, Karnataka, Rajasthan and Uttar Pradesh.
Benefit to Customers.
The customers of all three banks stand to benefit in the process. The 120+ million customers will experience superior banking services and benefit from wider product range including cash management solution, supply chain financing, financial planning, wealth management services etc. These benefits will be supplemented by increased number of touch points numbering 22,000+ with enhanced geographical reach. The NRI customers of the three banks will now have access to a larger network in India.
The Centers of Excellence in Analytics & Artificial Intelligence and Technology of Bank of Baroda would enable improved processes and increased cross selling.
Dena Bank customers will have renewed access to credit facilities immediately. Foreign currency funding will now be available to customers of Vijaya Bank and Dena Bank as also they will have access to Bank of Baroda’s international presence at 101 offices. Unique programs of Vijaya Bank like SRTO funding, plantation financing will be available to customers of the other two banks.
Commenting on the occasion, P.S. Jayakumar, MD & CEO, Bank of Baroda, 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. We would work for the success of amalgamation by effective execution of all the activities to build a stronger organization and collectively deliver more to the stake holders than that of sum of individual entities."
He further added that, "The diverse bouquet of products from the three banks, substantial investments made in technology and Centre of Excellence on Analytics & AI and Technology will help in benefiting a wider customer base. The customers of Dena Bank will be able to avail credit facilities immediately. We would use this unique opportunity to leverage upon the rich legacy of three banks to build a modern and world-class banking institution for our customers, employees, partners, and other stakeholders."
