News That Matters

Tag: Baroda

Bank of Baroda cuts MCLR by up to 10 bps

Bank of Baroda cuts MCLR by up to 10 bps

Finance
NEW DELHI: State-owned Bank of Baroda on Monday announced cut in its marginal cost of funds-based lending rates (MCLR) by up to 10 basis points, effective February 12. The reduction will make home, auto and other loans cheaper for new borrowers. With this reduction, the one-year MCLR has come down to 8.15 per cent per annum from 8.25 per cent, according to a bank statement. The reduction in MCLR by the bank comes a day after the Reserve Bank of India left the repo rate unchanged at 5.15 per cent but announced long-term repo operation for up to Rs 1 lakh crore, making cost of funds cheaper for banks. While the one-month MCLR has been reduced by 5 basis points to 7.55 per cent, overnight, three- and six-month rates were down by 10 basis points, it said. Last week, market leader State Bank of...
Bank of Baroda to pass on RBI’s repo rate cut benefit to external benchmark linked loans

Bank of Baroda to pass on RBI’s repo rate cut benefit to external benchmark linked loans

Finance
Bank of Baroda said Monday that it will pass on the benefit of the latest 25-basis points (bps) repo rate cut announced by the Reserve Bank of India in its bi-monthly monetary policy. In a press release, it said that the benefit will be applicable on home, car, education, personal loans and all other retail loan products by linking all new retail loans automatically to external benchmark rate (repo). Under the repo-linked rate scheme, there will be a single rate offered for all customers whether they are salaried, self-employed or a non-resident Indian. The bank also offers an incentive to customers to maintain or improve their credit score to avail of the best rates. V.S. Khichi, Executive Director, Bank of Baroda said, "We at Bank of Baroda want to pass on the reduced external benchmark ...
Bank of Baroda expects to complete integration of Dena Bank, Vijaya Bank in two years

Bank of Baroda expects to complete integration of Dena Bank, Vijaya Bank in two years

Finance
NEW DELHI: State-owned Bank of Baroda (BoB) is likely to complete the process of merger of Dena Bank and Vijaya Bank with it in two years, said a senior official of BoB. The merger of Dena Bank and Vijaya Bank with BoB became effective from April 1. Information technology platform integration alone will take about 12 months and other processes and systems may take another year or so, the official said. The process has been designed to ensure that there is minimum disruption of the customers during the transition period, the official said adding that the branding of the three entities will be retained in the interim period and will be transitioned to the new brand in a phased manner to ensure minimum disruption to existing operations. As far as capital is concerned, the official said, th...
Bank of Baroda becomes second largest PSU bank after SBI

Bank of Baroda becomes second largest PSU bank after SBI

Finance
NEW DELHI: Bank of Baroda (BoB) Monday became the second largest state-owned lender after merging Dena Bank and Vijaya Bank into itself as part of the first three-way amalgamation. The consolidated entity started its operation with a business mix of over Rs 15 lakh crore of balance sheet, with deposits and advances of Rs 8.75 lakh crore and Rs 6.25 lakh crore, respectively. BoB now has over 9,500 branches, 13,400 ATMs, 85,000 employees to serve 12 crore customers. Meanwhile, BoB completed share allotment to shareholders Dena Bank and Vijaya Bank as per the scheme of amalgamation. Shareholders of Vijaya Bank got 402 equity shares of BoB for every 1,000 shares held. In the case of Dena Bank, its shareholders received 110 shares of BoB for every 1,000 shares. The bank on Monday issued and all...
Vijay Denanath Baroda Bank: Challenges of the urge to merge

Vijay Denanath Baroda Bank: Challenges of the urge to merge

Finance
NEW DELHI: In August last year, the government asked the 21 public-sector banks (PSBs) to come up with their plans for consolidation. With the proposed merger of Bank of Baroda, Vijaya Bank and Dena Bank — now being jokingly called Vijay Denanath Baroda Bank on social media — the government has taken one more step towards consolidation aimed at creating just a few banks so big that they matter globally. The merger will bring down the number of PSBs to 19. The merger has raised questions due to the health of Dena Bank. Due to its burden of NPAs, it is currently under the Prompt Corrective Action framework of the RBI and has been restrained from further lending. The government believes that the merger would improve the operational synergy and would be better than several entities competing