Bank of Baroda (BoB), the country’s second largest public sector bank, has decided to shut down or rationalize 800 to 900 branches across the country to increase its executive efficiency. BOB is going to take this step after the merger of Bank and Vijaya Bank. Let us know that Dena Bank and Vijaya Bank have merged with the Bank of Baroda from April 1.
According to a senior official of Bank of Baroda, after the merger of Dena and Vijaya Bank, the branches of both the banks are operating in one place, which has no justification. According to the officials, there are many cases in which the branches of the three banks are employed in one place or same building. In such cases, these branches will either be closed or the branches will be made logical to prevent efficiency and duplication.
The official said that after extensive review, we have realized that 800 to 900 branches need to be shut down or relocated. This includes the option of transferring some branches to other places or closing them. The official said that many regional and zonal offices of three banks are also running in one place. In such a situation, there is no justification to run them and they need to be closed. The official says that the bank has a strong position in South, West and North India. In this way, they need to expand in the eastern part of India.
With the merger of Dena Bank and Vijaya Bank, Bank of Baroda has become the second largest public sector bank after the State Bank of India. At present, BoB has 9500 branches, 13,400 ATMs, 85,000 employees, and 12 million customers. After the merger, the total turnover of the bank had crossed Rs 15 lakh crore. Earlier, in April 2017, the State Bank of India had merged with five Associate Banks and Bhartiya Mahila Bank. In the January-March quarter of 2019, the Bank of Baroda has lost a deficit of Rs 991.37 crore. In the same quarter last year, the bank had a loss of Rs 3,102.34 crore. During this period, net interest income of the bank increased by 25.73% to Rs 4,863 crore, while other non-interest income increased by 47.04% to Rs 894 crore.