India’s Bank of Baroda is reportedly planning to rationalise 800-900 branches following its consolidation with two other state-owned lenders.
Last month, Dena Bank and Vijaya Bank merged with Bank of Baroda, the first three-way consolidation in the Indian banking system.
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The merger was first announced in September last year and was approved by the government in January this year.
Bank of Baroda branch rationalisation
A senior Bank of Baroda official told PTI that branches of the three banks at the same location will be rationalised under the latest move.
The move is expected to improve operational efficiency of the combined bank as well as reduce operating costs.
“There are cases where branches of three banks are at one location or one building. So these branches have to be either closed or rationalised as duplication is a drain on efficiency,” the news agency quoted the official as saying.
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By GlobalDataOverall, the bank has identified 800-900 branches for rationalisation. The move will include relocating some branches, while some offices will be closed.
Additionally, some of the redundant regional and zonal offices may be closed.
Following the merger, Bank of Baroda has become the second-largest public sector lender in the country after State Bank of India.
The combined lender employs more than 85,000 people and operates more than 9,500 branches and 13,400 ATMs. It has a customer base of more 120 million.
Besides branch rationalisation, the lender also plans to expand its presence in the eastern part of India.
