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Customers of Dena Bank and Vijaya Bank will continue to see the familiar logos of ‘Goddess Lakshmi’ (the Goddess of Wealth) and that of ‘A man bowing humbly with his hands in his pockets’ for some more time, despite the banks getting merged with Bank of Baroda with effect from April 1, 2019.
However, the branches will also sport the ‘Now - Bank of Baroda’ sticker on the branches to reflect the changed status.
To avoid confusion among customers, branches of transferor banks (Dena Bank and Vijaya Bank) will continue to have old signages for a few more months, said a senior Dena Bank official, adding the ‘Now - Bank of Baroda’ line will be incorporated in them. According to the Government’s Gazette Notification issued on January 2, upon amalgamation of the transferor bank 1 (Vijaya Bank) and the transferor bank 2 (Dena Bank) with the transferee bank (BoB), the surviving entity being the transferee bank shall be known as Bank of Baroda.
Dena Bank and Vijaya Bank will merge with BoB to form India’s second-largest public sector bank.
The amalgamation will be the first-ever three-way consolidation of banks in India. The Finance Ministry, in a statement in January, said the amalgamated bank will be better equipped in the changing environment to meet the credit needs of a growing economy, absorb shocks, and possess the capacity to raise resources.
Economies of scale and wider scope would position the amalgamated bank for improved profitability, wider product offerings, and adoption of technology and best practices across the amalgamating entities for cost-efficiency, improved risk management, and financial inclusion, through wider reach.
It would also enable the creation of a bank with scale comparable to global banks and capable of competing effectively in India and globally.
Core strengths
“The strength of individual banks, such as Dena Bank’s relatively higher access to low-cost CASA (current account, savings account) deposits, Vijaya Bank’s profitability and availability of capital for growth, and the extensive and global network and offerings of BoB, will translate into advantages in terms of market reach, operational efficiencies, and the ability to support a wider offering of products and services,” the statement said.
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