Page 30 - Banking Finance March 2019

ARTICLE

 Cost Efficiency: The merger results in improving the
Wedding Invitation
purchasing power of the company which helps in
Ministry of Finance negotiating the bulk orders and leads to cost efficiency.
The reduction in staff reduces the salary costs and
Solicit Your Gracious Presence & Blessings on the
increases the margins of the company. The increase in
Auspicious Occasion of the Marriage Ceremony of their
production volume causes the per unit production cost
beloved SON
resulting in benefits from economies of scale.
Bank of Baroda
 Competitive Edge: The combined talent and resources
(Bridegroom) of the new company helps to gain and maintain a
With competitive edge.
 New Markets: The market reach is improved by the
Vijaya Bank & Dena Bank
merger due to the diversification or the combination of
(Brides)
two businesses. This results in better sales opportunities.
On Monday 1st April, 2019
'Rationalization' AND 'Economies of Scale' are the TWO
Muhurat - 10.00 am
biggest Advantages in the proposed merger of VB and DB
At with BOB, thereby huge Cost Reduction, Increase in
Bank of Baroda Productivity Levels and it strengthens the Balance Sheet of
Suraj Plaza 1, Sayaji Ganj acquiring Bank.
Baroda 390005
While finalizing the marriage alliance by Ministry of Finance
With Best Compliments From: (MOF), Government of India, New Delhi the following
Reserve Bank of India financial parameters of both bridegroom and brides were
Indian Banks Association studied and finalized the Muhurat for the Merger.
Bank's Unions and Associations
Customers and Staff Members. About Bridegroom (Bank of Baroda):
No Boxed Gifts Please Bank of Baroda is an Indian State-owned International banking
and financial services company headquartered in Vadodara
The Cabinet has approved the Merger of Vijaya Bank (VB)
(earlier known as Baroda) in Gujarat, India. It's Headquarters
and Dena Bank (DB) with Bank of Baroda (BOB)
is in Vadodara, it has a Corporate Office in Mumbai.
The move will help to create a strong globally Competitive
Bank with Economies of Scale and enable the realization The bank was founded by the Maharaja of Baroda,
of wide-ranging synergies, leveraging of Networks and Maharaja Sayajirao Gaekwad III on 20 July 1908. The bank,
Low-Cost Deposits and substantial rise in customer base along with 13 other major commercial banks of India, was
and Operational Efficiency. After merger, Bank of Baroda nationalized on 19th July 1969, by the Government of India.
will become the Third Biggest Bank in India.
About 1st Bride (Vijaya Bank):
The scheme will come into effect from 1st of April, 2019.
Vijaya Bank, was founded on 23rd October 1931 by late Shri
The pay and allowances and services of the employees of A.B.Shetty and other enterprising farmers in Mangaluru,
all Three Banks will remain the same as earlier. Karnataka. The objective of the founders was essentially to
promote banking habit, thrift and entrepreneurship among
In general, the following are the advantages of the mergers the farming community of Dakshina Kannada district in
either in service or in manufacturing organizations: Karnataka State. The bank became a scheduled bank in 1958.
 Synergy: The synergy created by the merger of two
companies is powerful enough to enhance business Vijaya Bank steadily grew into a large All India Bank, with
performance, financial gains, and overall shareholders nine smaller banks merging with it during the 1963-68. The
value in long term. credit for this merger as well as growth goes to late Shri

30 | 2019 | MARCH | BANKING FINANCE