How Dena Bank, Vijaya Bank customers will benefit from their banks' merger with Bank of Baroda
April, 02nd 2019
Combined entity has a network of close to 9500 branches, approximately 13000 ATMs across India. (Vijaya Bank - ATMs approx 2000 & Branches approx 2050 , Dena Bank - ATMs approx 1500 & branches approx 1850) .
Dena Bank, Vijaya Bank and Bank of Baroda merger: Continuing its merger plan for public sector banks, the government has finally completed the mega-merger of one weaker lender Dena Bank and anchor lender Vijaya Bank with a 111-year-old Bank of Baroda (BoB). All these banks are different from each other, have different business operations, hold different positions and have different experiences. This would be second biggest merger plan of centre, after largest lender State Bank of India (SBI) acquisition with its own six associated banks. Dena Bank and Vijaya Bank on their official website stated that the process of amalgamation promises to leverage the specific skills of each bank and imbibe their best practices. This mega entity has the ability to do more and reach further to fulfil customers with world-class offerings backed by robust processes.
While there won’t be much material change in BoB considering it is the acquirer, the implementation of taking under Vijaya Bank and Dena Bank will be something to watch for. That said, even customers of Vijaya Bank and Dena Bank will see changes in their way of carrying a financial transaction. But for your information as a customer, you will be beneficial from this merger as well. Here’s how!
According to Dena Bank and Vijaya Bank, the customer will become a part of the larger organization or Bank, named Bank of Baroda. The new entity will have an increased market share, which will help improve economies of scale and become more profitable. The customers of each Bank will benefit by way of a larger number of branch and ATM network, have access credit facilities and a wider array of products and services.
The combined entity has a network of close to 9500 branches, approximately 13000 ATMs across India. (Vijaya Bank - ATMs approx 2000 & Branches approx 2050 , Dena Bank - ATMs approx 1500 & branches approx 1850) .
See Zee Business's other Tweets Currently, BoB has around 5500 branches in India and 104 branches in overseas locations. Vijaya Bank has approximately 2050 branches and Dena Bank has around 1850 branches in India.
Further, a customer can also choose from a broader suite of products & services. Any merger or amalgamation of one or more banks provides a broader geographic footprint and helps derive the benefit of size, scale, strength.
This would be now the second largest public sector Bank in the country and third largest bank after State Bank of India and ICICI Bank.
Hence, now the customers will enjoy first a financial operation with a strong bank and more secured bank. Secondly, they will also have a larger footprint in services like ATM, digital transaction services. Apart from this, a customer will also have more benefits that are currently offered by BoB, but was not available in Dena and Vijaya.