PIB News Update: The objective of amalgamation of the banks is to facilitate consolidation among Public Sector Banks (PSBs) to create strong and competitive banks capable of achieving economies of scale and realisation of synergy benefits with wider product and service offering for customers.
This was stated by Shri Anurag Singh Thakur, Minister of State for Finance & Corporate Affairs, in a written reply to a question in Lok Sabha today.
The amalgamation of Vijaya Bank and Dena Bank into Bank of Baroda (BoB) was effected on 1.4.2019. As per the input received from BoB, the total number of branches of the amalgamating banks i.e. BoB, erstwhile Dena Bank (eDB) and erstwhile Vijaya Bank (eVB), as on 31.3.2019, was 9,447 which increased to 9,481 branches as part of the amalgamated entity, as on 29.2.2020, and the rural branches too increased from 2,930 to 2,934 during this period.
Shri Thakur further stated that BoB has apprised that the rural footprint of the amalgamated bank has also increased since amalgamation and with the increased reach and enhanced business engagement with the rural people and farmers, visible gains are incurred including, inter alia, priority sector lending has increased by Rs. 4,253 crore to Rs. 2,23,128 crore, as on 31.12.2019, the cumulative balance of Kisan Credit Cards, increased by Rs 1,796 crore to Rs 38,325 crore, as on 7.3.2020, and in 11 months since amalgamation agriculture loan disbursements have increased by Rs. 46,690 crore and access to credit through overdraft amount advanced to the Pradhan Mantri Jan Dhan Yojana accounts has increased by Rs 11.38 crores.