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Merger of BoB, Vijaya, Dena banks in 4-6 months: BoB MD
New Delhi, Sep 17 (IANS) As the government on Monday proposed amalgamation of Bank of Baroda (BoB), Vijaya Bank and Dena Bank into the country’s third-largest bank, BoB Managing Director P.S. Jayakumar said it may happen in four to six months.
“Going by past practices, the merger may take four to six months. It can be speeded up also…it depends,” Jayakumar told reporters after Finance Minister Arun Jaitley and Financial Services Secretary Rajeev Kumar announced the proposal here.
The envisaged amalgamation will be the first-ever three-way consolidation of banks in India, with a combined business of Rs 14.82 lakh crore. The combined entity will have a net NPA ratio at 5.71 per cent, better than public sector banks (PSB)’s average of 12.13 per cent.
“With the benefit of scale working in, with greater distribution and more opportunities for products for costumers etc., a reasonable assumption is that there will be good opportunity to come but it is something that will happen in due course,” he said.
The boards of the three state-run banks are expected to meet shortly and consider the government’s proposal and decide the merger ratio and other details of the scheme of amalgamation. The government’s shareholding will be as per the merger ratio.
Financial Services Secretary Rajeev Kumar said the biggest beneficiary of the merger is the amalgamated entity and the banking industry, as it aims to get scale, synergy and reach for the benefit of the customers.
“It is in tune with the sixth largest economy in the world. You need a global reach. Both Dena Bank and Vijaya Bank will get that global reach through BoB and BoB will get a much sounder credit culture in the Vijaya Bank. It’s futuristic where you have large global banks,” Kumar said.
BoB MD and CEO Jayakumar said while it will benefit loss-making Dena Bank, BoB will be benefited by its stronger presence in Maharashtra and Gujarat, and by having more branches in under-represented four southern states.
“BoB brings a huge foreign currency position to the table, technology is there and there are lot of things we are doing in the transformation journey which will be value to them (Vijaya Bank and Dena Bank).
“The new entity will benefit from a better CASA ratio of Dena Bank. The loan book will get diversified more into retail and MSME from a corporate exposure perspective. The loan book of BoB will go up by 40 per cent in the combined entity,” he said.
CASA ratio is the ratio of deposits in current and saving accounts to total deposits. Higher CASA ratio indicates lower cost of funds for banks.
“It is a progressive move and signifies the government’s determination to strengthen the banking sector in the country,” industry body FICCI President Rashesh Shah said.
“This merger will lead to greater operational efficiencies and the entities involved would benefit through a synergistic relationship that would leverage each other’s network, customer base and access to low-cost deposits,” he said.
Though the government has assured there will be no job cuts, Delhi State Bank Workers Organisation General Secretary Ashwani Rana opposed the decision.
“The government’s decision to merge the banks is not correct and the unions oppose it. There is no guarantee that it will benefit the banks, its employees and customers. Also, it is less likely to impact the NPA as was seen in SBI’s case. It will have an adverse impact on the current employees,” Rana said.
The National Organization of Bank Workers (NOBW) also opposes this merger, he added.
–IANS
mgu/nir
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.
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