The decision was prompted by the fact that it does not make sense to have Dena Bank and Vijaya Bank branches at the same location after their merger with BoB
New Delhi: Bank of Baroda (BoB) is considering rationalising 800-900 bank branches in order to improve operational efficiency in the aftermath of the merger of Vijaya Bank and Dena Bank with itself. A senior bank official said that the decision was prompted by the fact that it does not make sense to have Dena Bank and Vijaya Bank branches at the same location when both the banks have been merged with BoB.
Bank looking at re-location or closure
“There are cases where branches of three banks are at one location or one building. So these branches have to be either closed or rationalised as duplication is a drain on efficiency,” the source said. The bank would now either opt for re-location or closure, the official added.
The bank would also be looking at rationalising regional and zonal offices of merged entities as they would not be required.
The official also said that the bank has a strong presence in the south, west and the northern part of the country but will not have to plan expansion in the eastern part of the country.
The three-way merger of BoB, Dena Bank and Vijaya Bank took effect on April 1. BoB is now the second-largest lender in the country after State Bank of India (SBI) and has over 9,500 branches, 13,400 ATMs, and 85,000 employees to serve 12 crore customers.
The merged entity started operations with a business mix of over Rs 15 lakh crore on the balance sheet, with deposits and advances of Rs 8.75 lakh crore and Rs 6.25 lakh crore, respectively.