* First three-way consolidation of banks in India
*Combined bank to have 9,500+ branches, 13400+ ATMs, 85,000+ employees serving 1 customers with a business mix of INR 15 lakh+ crore
*Customers to benefit from wider reach and diverse bouquet of products and services
*Significant cost and revenue synergies
*Interest of all employees to be protected .
Bengaluru, April 1, 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
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, 13400+ ATMs, 85,000+ 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 radesh . 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.
Employee Interests Protected
Bank of Baroda has been ranked amongst top 50 companies on People Capital Index (PCI). It believes that its human resources are the biggest differentiator having significant impact on operations.
The employees of the amalgamated bank will benefit from the diverse opportunities provided by a larger bank with significantly expanded size and scale. The employees would have improved professional exposure and prospects, including the global exposure. The service conditions of the employees will not impacted and the interests of employees will be fully protected. The best of HR practices adopted by each of the banks will be examined for adoption Stronger Brand The Bank strongly believes in in creating a strong brand connect with customers. The Bank has rolled out various initiatives towards enhancing the aided and unaided recall of the brand. As per Interbrand -Best Indian Brands 2019, the brand of “Bank of Baroda is ranked 23rd. The brand value will be further strengthened with brand power of Vijaya Bank and Dena Bank.
Commenting on the occasion, Mr. 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. The diverse bouquet of products from the three banks, substantial investments made in technology and Centre of Excellence on Analytics & Al and Technology will help in benefititing a wider base. The customer 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. I thank Mr. Sankara Narayanan and Mr. Karnam Sekar, MD& CEOs of the two amalgamating banks, for facilitating the seamless and frictionless transition”.
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