Page 29 - Banking Finance March 2019

COVER STORY

MARRIAGE

INVITATION OF

'BANK OF BARODA'

WITH 'VIJAYA

BANK' AND 'DENA

BANK'

(Horoscopes of Three Banks)

ABSTRACT
The Cabinet has approved the Merger of Vijaya Bank (VB) and Dena Bank (DB) with Bank of Baroda (BOB).
Merger gives more benefits to the acquiring bank particularly to reduce "Fixed and Variable Costs" and to
control wastages of the bank to a large extent. But one important factor is to be look into by the acquiring
bank in merging process i.e., Strengthen the Organizational Structure i.e., Centralization and Decentralization
of various operational areas of the Bank, span of control of various operating units of the Bank.

Mergers and Acquisitions are like Marriages. Lack of
About the author willingness to work on it could make the Merger Process and
the New Entity a tragic and painful experience of destroyed
CMA Dr. P. Siva Rama Prasad dreams.
Retired Asst. General Manager,
State Bank of India, Hyderabad.
He is Fellow Member of Institute of Cost At the beginning it is always with a hope and vision about
Accountants of India, Institute of Company the combined entity and greater Market Share,
Secretaries of India, Insurance Institute of Diversification into New Products or Services, Expansion up,
India and Indian Institute of Banking and gaining Cutting-Edge Expertise for New Product
Finance.
Development and so on.

BANKING FINANCE | MARCH | 2019 | 29