Merger of BoB, Dena, Vijaya Bank may bring in savings worth Rs 10 billion

Credit rating agency Moody's on Tuesday said the merger of these banks would bring benefits of scale and governance

The proposed rationalisation of Bank of Baroda (BoB), Vijaya Bank and Dena Bank’s branches is expected to bring savings of Rs 10-12 billion annually, an official said.

 BoB and Dena Bank have branches in the same vicinity and need rationalisation in nearly 1,000 locations. The rationalisation of branches will lead to a reduction in manpower, a Dena Bank executive said. However, there will not be any job loss. Some employees might be transferred to other branches or utilised at new branches, he said.

Dena Bank has over 1,800 branches in Gujarat, Maharashtra and Chhattisgarh.

The lender has 616 branches in Gujarat and 323