BENGALURU : The amalgamation of Bank of Baroda, Vijaya Bank, and Dena Bank came into effect on Monday, making the combined entity the country’s second-largest public sector bank. The consolidated entity will have a business mix of Rs 15 lakh crore, with deposits and advances of Rs 8.75 lakh crore and RS 6.25 lakh crore, respectively. Now BoB will have a wider geographical reach, with 9,500 branches and more than 13,400 ATMs.
“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,” said PS Jayakumar, MD and CEO, Bank of Baroda. “We would work for the success of amalgamation by the effective execution of all the activities to build a stronger organisation and collectively deliver more to the stakeholders than that of the sum of individual entities,” he added.
The new entity will focus more on the micro, small and medium enterprises and on the retail segment.
All branches of Vijaya Bank and Dena Bank will function as branches of Bank of Baroda from April 1, 2019. The bank will have a 22 per cent market share in Gujarat and between 8-10 per cent market share in Maharashtra, Karnataka, Rajasthan and Uttar Pradesh.
The complementary branch presence will add to the network in western and southern states–Maharashtra, Gujarat, Kerala, Tamil Nadu, Karnataka and Andhra Pradesh. The three banks’ IT integration is expected to be completed over a period of 12-18 months, when customer accounts of all three banks will be migrated to a single core banking system.Earlier, in September last year, the government had announced plans to amalgamate the three public sector lenders.