Money & Banking

Bank of Baroda puts erstwhile Dena Bank's HQ on the block; sets reserve price of Rs 530 cr

Our Bureau Mumbai | Updated on September 12, 2019 Published on September 12, 2019

Bank of Baroda (BoB) has put the erstwhile Dena Bank’s headquarters located in Mumbai’s prime business hub of Bandra Kurla Complex (BKC) on sale via e-auction. It has set a reserve price of ₹530 crore for the sale.

This move comes in the wake of Dena Bank and Vijaya Bank getting merged with BoB with effect from April 1. The e-auction is scheduled to take place on October 18. Dena Bank had moved its headquarters to BKC from Cuffe Parade in 2004.

The Dena Corporate Centre in Mumbai's central business district of BKC is spread over 2,878.36 square meters. It is has a built-up area of 9,953.73 square meters. BoB’s corporate office in BKC is spread over two buildings.

Union Bank of India may consider buying Dena Corporate Centre as it will need larger space to accommodate the Mumbai zonal office once Andhra Bank and Corporation Bank get merged with it.

BoB has cited rationalisation of administrative offices as one of the immediate benefits that accrue to it following the amalgamation. The other benefits arise from common treasury operations and corporate banking.

Cost synergies

In the medium term, the bank expects cost synergies to flow in from optimisation of the distribution network, integration of IT infrastructure, data and disaster recovery centres, and centralisation of operations.

A senior official of the erstwhile Dena Bank said that in in the process of rationalisation of administrative offices and distribution network, BoB should ensure that it does not put the heritage Dena Bank building at Horniman Circle in South Mumbai on the block.

Last year, in one of India’s biggest commercial property acquisitions, market regulator SEBI had struck a deal to buy IDBI Bank’s seven-storey office building at BKC for about ₹1,000 crore.

Dena Bank was nationalised in July 1969, along with 13 other major banks. The bank was founded in 1938 by the family of Devkaran Nanjee under the name Devkaran Nanjee Banking Company Ltd. It became a public limited company in December 1939, and later the name was changed to Dena Bank.

 

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Published on September 12, 2019
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