A Day after the announcement of the megabank merger of the Bank of Baroda, Vijaya Bank & Dena Bank was done, major problems like a grouping of the bad loans, branding of the combined entity, rationalisation of the existing branches and shifting of the bank employees erupted. However, the government and the concerned Bank authorities are looking to settle down it as soon as possible.
Just after the merger of Bank of Baroda, Vijaya Bank & Dena Bank was announced on Monday, the government has directed all the banks to hold the board of director meeting individually to approve the amalgamation and complete the task within 4-6 months.
Following the order of the government, Bank of Baroda, Vijaya Bank & Dena Bank will soon hold their respective board meeting within 8-10 days.
The major challenge faced ahead of the merger of Bank of Baroda, Vijaya Bank & Dena Bank was to align the accounts of the customers with each other as according to the senior officials, those accounts will need high provisions.
The branding of the merged entity with their logo is another issue to be tacked as none of the individual banks would like to withdraw their brand and unique logo after the execution of the merger of Bank of Baroda, Vijaya Bank & Dena Bank.
However, while speaking about the merger, MD and CEO of Vijaya Bank, R. A. Sankara Narayana assures the bank staff benefits and no negative impacts in the future like assignments, perks, career and rolls.
Along with the higher officials of the Bank of Baroda, Vijaya Bank & Dena Bank, the finance ministry said that there will no immediate closure of the branches across the nation after the merger.
According to Narayana, the combined branches of Bank of Baroda, Vijaya Bank & Dena Bank are around 9,500 and the maximum branches to be affected after the merger will be 500 which will be decided as per the benefits and requirements.