The process of merging Vijaya Bank and Dena Bank with Bank of Baroda is likely to be completed within 2 years. The merger of Vijaya Bank and Dena Bank with Bank of Baroda came into effect from 1 April 2019.
An official from Bank of Baroda said that the integration of the information technology platform alone will take nearly a year’s time. Integrating other systems and processes is expected to take at least another year. The integration process has been created to ensure minimum disruption to the customers of all three lenders during this transition period.
The official from Bank of Baroda added that the three lenders will continue to retain their distinctive branding during the interim period.
With regard to the capital, the Government of India has infused a sum of Rs.5,042 crore into the bank to help with additional expenses and to help the lender maintain the minimum capital requirement.
The three-way merger of Vijaya Bank and Dena Bank with Bank of Baroda is the primary step in the consolidation of public sector lenders in the country, as per the Narasimhan Committee report of 1991. With this merger, the Government of India has created an entity that is of global size and scale.
The consolidated institution began its operations with a business mix of more than Rs.15 lakh and with advances and deposits of Rs.6.25 lakh crore and Rs.8.75 lakh crore, respectively.
Bank of Baroda, which is now the second biggest public sector bank in the country after SBI, has more than 9,500 branches, 85,000 employees, 13,400 ATMs, and around 12 crore customers.
The three-way amalgamation of the Vijaya Bank, Dena Bank, and Bank of Baroda was one of the initiatives that were undertaken by Mr. Rajiv Kumar, the Financial Services Secretary, to make public sector lenders more robust, healthy, and internationally competitive.
Following this merger, the number of public sector banks in the country has reduced to 18.
Source: The Times of India, Livemint