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The Merger of Bank of Baroda, Dena Bank and Vijaya Bank: 10 Things You Need to Know

Vijaya Bank and Dena Bank will merge with the Bank of Baroda today (April 1, 2019). Government took decision in this regard last year. Here are the 10 things you need to know about the merger. 
 

  •  The new consolidated Bank will have the name ‘Bank of Baroda’ and the other two banks – Dena Bank and Vijaya Bank –  will function as branches of BoB. Customers, including depositors of Vijaya Bank and Dena Bank, will be treated as customers of Bank of Baroda.

  • The merged entity will be the third-largest bank in India, after State Bank of India and HDFC Bank. 

  • It will also be the second largest Public Sector Bank, after the SBI. The Punjab National Bank (PNB) was so far the second largest PSB. 


  • This is also India’s first-ever three-way consolidation of banks in India. 

  • In terms of the number of branches, Bank of Baroda will rank second in India across all banks.

  • The consolidated bank will have over 9,500 branches, 13,400 ATMs, 85,000 employees to serve 12 crore customers

  • After the merger, the number of Nationalized banks will reduce from 19 to 17 and the total number of public sector banks (PSBs) will reduce to 18 (17 nationalized banks and SBI)

  • The bank will have a combined business of  ₹14.82 lakh crore, with deposits and advances of ₹8.75 lakh crore and ₹6.25 lakh crore, respectively.  With the merger, the new bank will rank second in deposits and third in advances.


  • The combination of Bank of Baroda-Dena Bank-Vijaya Bank will create a bank with a nationwide reach. While Bank of Baroda already has a wide spread network, Dena Bank and Vijaya Bank are more regionally focused.  This merger will help BoB increase its reach in the western, southern and north-eastern regions.

  • The net non performing assets (NPA) of the new entity will be at roughly Rs 80,000 crore or 5.71%, which is below the threshold (6%) fixed by the Reserve Bank of India.

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