Bank of Baroda to rationalize newly merged branches

Bank of Baroda to rationalise up to 900 branches post-merger

On April 1, 2019, Bank of Baroda merged with Dena Bank & Vijaya Bank to
become the third largest bank in India. Bank of Baroda is now next to State Bank of India & HDFC Bank in India. The merger is also the country’s first three-way merger of banks. The combined entity has a total business of over ₹15 lakh crores.


Inefficient operations

State-run Bank of Baroda is considering to rationalise 800-900 branches across the country following their merger. The objective of the bank to improve the efficiency of their banking network. Bank of Baroda has branches in close proximity to branches of Dena Bank and Vijaya Bank which causes inefficiency. There are cases where branches of these three banks are located in the same building or a region. In addition, the regional and zonal offices are also considered as they will further increase inefficiency. 


After an extensive review, Bank of Baroda discovered 800-900 branches which need to be rationalised. The bank reported that they will relocate most of their branches and opt for closure of some of their branches.
Bank of Baroda has turned into second largest public lender having an immense presence in the north, south and western parts of India. 
The bank announced they will focus towards growing their presence in the eastern parts of the country.


Changes post-merger


BoB has decided to take steps towards achieving uniformity in individual customer services of Dena Bank and Vijaya Bank customers. BoB will introduce basic banking facilities for all three banks by the end of May 2019. This transition will result in a record as the changes are done just within 2 months of the merger announcement. Further, the bank plans to provide basic services like cash withdrawal, cash deposit, balance enquiry to all 9,500 branches. The process will be completed by the end of May 2019.


A centralized redressal system has been adopted by the bank. This system will respond to the queries by the employees and help them reach a solution. The system will serve employees from all three banks.


The other minor changes include changes in operating hours of Dena Bank & Vijaya Bank from 10.00 am-5.00 pm from 9.00 am-4.00 pm. presently BoB shares the same timings which will bring uniformity in operating hours and ensure smooth functioning of the merged entity.


Magnitude post-merger


Since the unification of all the three banks, the bank houses over 9,500 branches, around 85,000 employees and 13,400 ATM’s. The BoB has a customer base of 12 crores. The business accounts for more than ₹15 lakh crores. They have deposits of ₹8.75 lakh crores and advances of ₹ 6.25 lakh crores.




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