The merger proposed merger was announced in September last year, has positioned Bank of Baroda in the third largest category after State Bank of India and private lender HDFC Bank.
This is so far the second largest amalgamation in Indian banking history after the State Bank of India merged with five of its associates and Bharatiya Mahila Bank in April 2017.
“We are extremely pleased that Bank of Baroda, Vijaya Bank and Dena Bank are coming together creating the second largest bank in terms of network and customer base,” said PS Jayakumar, Chief, Bank of Baroda.
The Reserve Bank of India (RBI) notified that the branches of Vijaya Bank and Dena Bank would function as the outlets of Bank of Baroda from April after the amalgamation comes into effect.
Bank of Baroda said that the consolidated entity will comprise over 9,500 branches, 13,400 ATMs, 85,000 employees to serve 12 crore customers.
The lender will have a business mix of Rs 15 lakh crore of a balance sheet, along with the deposits and advances of Rs 8.75 lakh crore and Rs 6.25 lakh crore, respectively.
“The diverse bouquet of products from the three banks, substantial investments made in technology will help in benefiting a wider customer base,” he said.
The enhanced branch presence with the additional support from Vijaya Bank and Dena Bank post the merger with add to Bank of Baroda’s network in Western and Southern states.
As a result of the merger, the lender will have a 22 per cent market share in Gujarat and 8-10 per cent market share in Maharashtra, Karnataka, Rajasthan and Uttar Pradesh, it said.
All the customers of Dena Bank will have renewed access to credit facilities immediately, in adherence to the prompt corrective action (PCA) framework of the RBI.