Power of 3! Three Banks Merged as ‘Bank of Baroda’ to Serve Way More BETTER Than Better?
Mangaluru: Bank of Baroda after amalgamation with Dena Bank and Vijaya Bank has a new slogan which states in Hindi language – “Ab Saath Hain Teen, Behtar Se Behtareen….Paiye Sab Kuch, Behtar Se Behtareen”? meaning to say that “We Are Three Together, Much Better than Better”! From April 1, 2019, Bank of Baroda, now the second largest Public Sector Bank, comes together to Create “Ab Saath HainTeen, Behtar Se Behtareen.” The tripartite amalgamation of Bank of Baroda, Vijaya Bank and Dena Bank, reflects the government’s focus towards consolidation and strengthening of the public-sector banking. Through the “Power of 3”, these banks come together to take products and services from better to the best. The focus is on reaching out and serving customers with the best-in-class products and services supported by robust processes. Employee interests are protected as the bank collectively works towards preserving the combined heritage and culture that fosters meritocracy, transparency and fairness for all.
Addressing the media persons Lalit Tyagi- Deputy Regional Manager, Bank of Baroda, Regional Office-Bengaluru said, ” From April 1, 2019, the amalgamation of Bank of Baroda, Vijaya Bank and Dena Bank has come 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 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 Pradesh. 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” added Tyagi.
He further said, “The customers of all three banks stand to benefit in the process. The 120+ million customers will experience superior banking services and benefit from wider product range including cash management solution, supply chain financing, financial planning, wealth management services etc. Foreign currency funding will now be available to customers of Vijaya Bank and Dena Bank. These benefits will be supplemented by increased number of touch points numbering 22,000+ with enhanced geographical reach.Dena Bank customers will have renewed access to credit facilities immediately. NRI customers of the three banks will now have access to a larger network in India. The customers of Vijaya Bank and Dena Bank will have access to Bank of Baroda’s international presence at 101 offices”.
Also speaking on the occasion, Shridar Murthy-GM/AGM Vijaya Bank Regional Office, Mangaluru said, “The Centers of Excellence in Analytics & Artificial Intelligence and Technology of Bank of Baroda would enable improved processes and increased cross selling. Unique programmes of Vijaya Bank like SRTO funding, plantation financing will be available to customers of the other two banks.The technology integration would be a two-stage parallel process. A consistency in customer experience will be established soon with uniformity in processes for delivery of customer services. The interoperability of the key banking services across all branches would be introduced by end-April 2019, the scope of which will be expanded gradually. The IT integration is expected to be completed over a period of 12-18 months when customer accounts of all three banks will be migrated to single core banking system”.
Murthy further said, “The consolidation offers cost and revenue synergies. The realizable revenue synergies arise from wider product offering, improved cross selling, deeper micro market penetration inter-alia on account of potential for branch relocations, improvement in fee income, etc. The branch and administrative office rationalization and tech spend optimization offers potential cost synergies. An action plan for realization of these synergies is being put in place. 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 be 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. 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 “.
A message from P.S. Jayakumar, MD & CEO, Bank of Baroda states, “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 stakeholders 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 & AI and Technology will help in benefiting a wider customer base. The customers 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”
Nagaraj- Chief Manager of Dena Bank, Mangaluru; M S Kumar- Assistant General Manager, Bank of Baroda, Mangaluru and Rengaraju-AGM, Vijaya Bank regional Office, Mangaluru were also present on the dais during the press meet.
About Bank of Baroda :
Bank of Baroda (“The Bank”) established on July 20, 1908 is an Indian state-owned banking and financial services organization, headquartered in Vadodara (earlier known as Baroda), in Gujarat, India. Bank of Baroda is one of India’s largest banks with a strong domestic presence supported by self-service channels. The Bank has a significant international presence with a network of 101 branches/offices subsidiaries, spanning 21 countries. The Bank has wholly owned subsidiaries including BOB Financial Solutions Limited (erstwhile BOB Cards Ltd.) and BOB Capital Markets.
Bank of Baroda also has joint ventures for life insurance with India First Life Insurance and for asset management with Baroda Pioneer Asset Management. The Bank owns 98.57% in The Nainital Bank. The Bank has also sponsored three Regional Rural Banks namely Baroda Uttar Pradesh Gramin Bank, Baroda Rajasthan Gramin Bank and Baroda Gujarat Gramin Bank. For more details log on to: www.bankofbaroda.com
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