Bank of Baroda, which became the second largest bank in the country post its merger with Vijaya and Dena banks from April 1, is undergoing a sea change. The state-run bank is planning to revamp its existing board in the months to come; it will hire a consultancy firm by early May, in order to evaluate the performance of the existing board.
Bank of Baroda (BoB) seeks to appoint an advisory firm for ‘Review of Board Evaluation’, the bank said in a Request for Proposal (RFP) document. “Bank of Baroda has decided to engage a consultancy firm to conduct an independent review of the overall evaluation and effectiveness of the bank’s board. The review would provide an opportunity to align and prioritise the board’s focus on critical issues,” the RFP said.
The last date of submission of a response to its RFP is May 2.
The evaluation process is in line with the guidelines stipulated by markets regulator Securities and Exchange Board of India (SEBI).
Sources in the BoB management claimed that the move would help in realigning the constitution of new board. “This is a complex merger. There is difference of work culture of the all the three banks. So, it is important to carefully select the Board of Directors. Some overhaul is expected in the coming days; hence, it is all the more important to evaluate the performance of the existing board members,” a senior BoB official told TMS.
The evaluation will also include individual directors, independent directors, chairperson and various committees of the board. The selected advisory firm will have to complete the assignment within six to eight weeks. It will also be tasked with defining the board’s vision as an outcome of the realignment workshop, and chalk out an ‘action plan for the board’.
Post the merger, the public sector bank now has over 9,500 branches, 13,400 ATMs and 85,000 employees to serve 12 crore customers. The consolidated entity started operations with a business mix of over `15 lakh crore on the balance sheet, with deposits and advances of `8.75 lakh crore and `6.25 lakh crore respectively.
The bank management has already said it will take about two years to complete the merger. The integration of its information technology platform alone is expected to take about 12 months and other processes and systems may take another year.