New Delhi: The first tripartite amalgamation in the Indian banking sector involving Dena Bank, Vijaya Bank and Bank of Baroda (BoB) became effective from April 1. The merged entity will target to achieve over 15 per cent return on equity (RoE) in next five years and double the market cap of the combined entity, sources said.
“The target of the new merged entity is RoE of greater than 15 per cent in next 5 years, increase in market cap two times and advances growth rate of 14-15 per cent CAGR for next 5 years,” official sources said.
The new entity will have a customer base of 120 million-plus serving 9 per cent of India’s population and in case of farm loans and corporate lending, this bank would be the second largest in the country, they said.
Bank of Baroda closed 3 per cent higher on the first day of trade after Vijaya and Dena banks merger with it.
Post amalgamation, Bank of Baroda's business metrics will change where CASA (Current Account Savings Account) deposits will increase from Rs 1.96 lakh crore to Rs 2.76 lakh crore and agri advances will increase from Rs 52,000 crore to Rs 80,000 crore.
The large corporate advances will increase from Rs 1.8 lakh crore to Rs 2.41 lakh crore and retail and MSME advances will rise from Rs 1.29 lakh crore to Rs 2.1 lakh crore, said the sources.
Customers will now have access to 9,500 branches and 13,000 ATMs. (IANS)
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