Panaji: Bank of Baroda (BOB) became the second largest public sector bank on Monday after the merger of Vijaya Bank and Dena Bank with it.
The merger came into effect on April 1, 2019 and it created a combined bank with 9,500 branches, 13,400 ATMs, 85,000 employees serving 120 million customers, said BOB, Goa officials.
They added that, customer convenience will be the top-most priority of the merger and by end of the month customers of the three banks can start using each others branches to deposit, withdraw money and make fund transfers.
“There will be no change in the cheque book and pass book to customers of Vijaya Bank and Dena Bank as of now,” said Arvind Lohi, deputy general manager and regional manager, Goa and Western Maharashtra.
He said that technical integration of the three banks is expected to take place in 12 to 18 months when customer accounts of all three banks will be migrated to single core banking system.
In Goa the amalgamated banking entity will have 59 branches which includes 31 branches of BOB and 27 branches of Vijaya Bank and Dena Bank.
“The merger will not affect employees of the three banks,” according to Lohi.
He pointed out that, at the top-level there “may be movement but at ground level there will be no difference to employees of the merged entity.”
“Customers of the three banks stand to benefit. They will experience superior banking practices and benefit from wider product range including cash management solution, supply chain financing, wealth management services,” claimed Lohi.
The BOB merger with Vijaya Bank and Dena Bank was approved by the respective boards in end-September 2018 and the process took about five months. Lohi said that, BOB will gain market share in Goa by way of more branches as well as business. The press briefing was in the presence of Shashank, chief manager credit, BOB, Goa and Western region Maharashtra and officials of all the three banks.
BOB expects significant cost and revenue synergies from the merger which is the first three-way consolidation of banks in India to help out stressed banks with support by a strong bank. [NT]