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New Delhi, Apr 24 () <keyword id="6358007" type="COMPANY" weightage="20" keywordseo="bank-of-baroda">Bank of Baroda</keyword> on Friday said its board has approved raising up to Rs 13,500 crore by 2020-21. "Board of Directors of our <keyword id="6355272" type="UNKNOWN" weightage="20" keywordseo="bank">Bank</keyword> in its meeting held today i.e. 24 April 2020...considered and approved raising of additional capital fund up to Rs 13,500 crore up to March 31, 2021 and beyond if found expedient," it said in a regulatory filing. The capital raise will comprise Rs 9,000 crore by way of common equity capital by various modes including QIP, etc in suitable stages and Rs 4,500 crore by way of additional tier I and tier II capital instruments with an inter-changeability option, issued in India/overseas in suitable tranches, it added. This will be subject to applicable statutory 1 regulatory approvals, the state-owned bank said. Bank of Baroda stock closed 4.23 per cent down at Rs 46.40 on See Also - <a class="in-cell-link" href="https://www.businessinsider.in/finance/news/how-to-check-account-balance-in-bank-of-baroda/articleshow/74119351.cms" target="_blank">How to check account balance of bank of baroda</a>

Bank of Baroda to raise up to Rs 13,500 cr

Mumbai, May 25 () State-owned Bank of Baroda on Monday said it has completed IT integration of 132 branches of erstwhile Vijaya Bank. In a first three-way amalgamation, Vijaya Bank and Dena Bank were merged with Bank of Baroda on April 1, 2019. As part of the process, 2,135 branches of Vijaya Bank and 1,777 branches of Dena Bank merged with BoB. The bank had earlier completed IT integration or migration of 20 branches of Vijaya Bank. "We took an incremental approach for migration. As a test case, we first migrated one branch of Vijaya Bank and then 10 branches. Earlier this month, we migrated another set of 10 branches, and this weekend we migrated 132 branches," the bank's chief technology officer Sharad Saxena said. All these 152 branches of erstwhile Vijaya Bank are now running on Finacle 10, the same IT platform which BoB is using, he said. Before the migration process started, all the payment channels such as ATMs, NEFT, RTGS and IMPS, UPI, of Vijaya Bank and Dena Bank were integrated with BoB. Saxena said once payment systems were integrated, the process of migration began starting with branches of Vijaya Bank. The bank plans to complete IT integration of the balance 1,983 branches of Vijaya Bank by September-October this year. Saxena said IT integration of Dena Bank will start from next month and is likely to be completed by end-December or January 2021. HV BAL BAL

Bank of Baroda completes IT integration with 132 branches of erstwhile Vijaya Bank

Mumbai, Mar 6 () One of the biggest losers in case the RBI's restructuring scheme for Yes Bank goes through will be the additional tier-I bond holders who have bets totalling to Rs 10,800 crore on the lender. The investors in such instruments typically include mutual fund houses and bank treasuries, experts said. "The instruments qualifying as additional tier-1 capital, issued by Yes Bank under Basel-III framework, shall stand written down permanently, in full, with effect from the appointed date," the draft of the 'Yes Bank Ltd. Reconstruction Scheme, 2020', said. The draft, which is open for public comments, added that the same is in conformity with the RBI's regulations based on the Basel framework. "This is for the first time in the history of the Indian banking sector that a bank's T1 bonds are being written down at the 'point of non-viability' (PONV) i.e. the investors have to take a hit on both principal and the balance interest payments," Acuite Ratings President Suman Chowdhury said. Both Acuite and its larger peer Icra Ratings said the value of the debt which will be wiped off in full will stand at Rs 10,800 crore. Following the announcement and also a downgrade of Yes Bank's ratings by rating agencies, Baroda Mutual Fund segregated the portfolios in two schemes -- Baroda Treasury Advantage Fund and Baroda Credit Risk Fund -- and marked down the value of investments to zero. As part of the restructuring package, SBI is all set to invest up to Rs 2,450 crore to take a 49 per cent stake in the beleaguered lender and ensure that its holding does not go below 26 per cent for the first three years after entering. The RBI's draft also proposes a host of other requirements which may be seen as detrimental by the current promoters of the bank, and also vests greater powers in the appointment of the management. It proposes deletion of four articles of association from the appointed date of the transaction, which will include rights of Indian partners to appoint three independent representative directors, recommend the name of the chairman and the chief executive and appoint whole-time directors. The newly appointed board of directors of the reconstructed bank will, however, have the freedom to discontinue the services of the key managerial personnel at any point of time after following the due procedure, it said. AA HRS

Additional tier-I bond holders to be hit by Rs 10,800 cr if Yes Bank restructuring goes through

<ul><li>On September 17th, Finance Minister <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> proposed the consolidation of <keyword id="6358007" type="DOMAIN" weightage="20" keywordseo="bank-of-baroda">Bank of Baroda</keyword> (BoB), <keyword id="6368859" type="DOMAIN" weightage="20" keywordseo="vijaya-bank">Vijaya Bank</keyword> and <keyword id="363392" type="DOMAIN" weightage="20" keywordseo="Dena">Dena</keyword> Bank.</li><li>The merged entity will become the third-largest bank in India and have nearly 9,500 branches.</li><li>Given its status as the weakest bank, Dena Bank is expected to benefit the most of the <keyword id="42411" type="PERSON" weightage="20" keywordseo="Merger">merger</keyword>. Its NPA ratio is more than double that of the other two banks. </li></ul> The problems plaguing India’s public sector banks are well known. In addition to poor governance, their balance sheets are disproportionately burdened with bad loans when compared to their private sector counterparts. The smaller, weaker ones are unable to compete in a crowded market and require fresh infusions of capital. The Modi administration’s approach to the problem has been to merge small state-owned banks with their larger peers. In early 2017, plans for <keyword id="6354731" type="DOMAIN" weightage="20" keywordseo="state-bank-of-india">State Bank of India</keyword> (SBI), India’s largest bank, to absorb five associate banks got underway. And now, 18 months hence, the Indian government is planning another merger. On September 17th, Finance Minister Arun Jaitley proposed the consolidation of two relatively well-capitalised banks - Bank of Baroda (BoB), Vijaya Bank - with Dena Bank, a struggling lender faced with credit limits as a result of being placed on the RBI’s Prompt Corrective Action (PCA) framework. The merged entity will become the third-largest bank in India and have nearly 9,500 branches. Bank of Baroda is the largest of the bunch with ₹10.3 trillion of total business, while Vijaya and Dena have ₹2.8 trillion and ₹1.8 trillion of business, respectively. Dena to benefit the most Given its status as the weakest bank, Dena Bank is expected to benefit the most of the merger. It has a <keyword id="463915" type="PERSON" weightage="20" keywordseo="non-performing-asset">non-performing asset</keyword> (NPA) ratio of a little over 11% - which means that 11% of all the entries in its loan book have gone bad - while BoB and Vijaya have a NPA ratio of 5.4% and 4.1%, respectively. Once merged, the bank will have a combined NPA ratio of 5.7%. Jaitley said that the government was making a conscious decision not to merge the operations of weak lenders. Rather, the merger of two strong banks and one weak bank seemed to be a more viable option, keeping in the mind the long-term sustainability of the merged entity and the potential for expansion. Bank of Baroda has a considerable national footprint, while both Dena and Vijaya have a strong presence in their respective regions of Maharashtra and Karnataka, especially in the small-and-medium enterprises (SME) segment. While bankers have lauded the move, the success of the consolidation strategy isn’t guaranteed yet. SBI has seen its performance decline following the merger with the associate banks. However, while the adjustment and integration process may prove a drag in the short term, the three banks mentioned above all have strengths that can be capitalised upon and overlapping cost centres that can be excised. Now what? The respective boards of each bank will now vote on the merger and if approved, will commence preparations on a plan for the amalgamation of the three entities and decide on a share-swap ratio. The merger plan will then need to be approved by the Indian Parliament. Since the government is a majority owner in all three banks, it seems more likely than not that the merger will be approved. The entire process is expected to take six months. Once the merger is completed, there will be only nine public-sector banks left on the PCA watchlist.

India’s government is merging three state-owned lenders to create one of the country’s largest banks

Mumbai, Mar 30 () Union Bank may look at exiting Andhra Bank's life insurance venture post amalgamation of the two lenders, according to a senior official.A final decision will be taken by the board of the merged bank, based on the valuation and also meeting the regulatory guidelines, Union Bank Managing Director and Chief Executive Rajkiran Rai G has said.Andhra Bank and Corporation Bank will get amalgamated into Union Bank on April 1, making it the fifth largest public sector bank in the country.The merger is part of the government's mega consolidation plan to amalgamate 10 state-owned banks to create four global size lenders, beginning next financial year.Following the merger, all investments of Andhra Bank and Corporation Bank will come under Union Bank as a combined entity.Andhra Bank has a life insurance joint venture -- India First Life Insurance -- wherein it owns 30 per cent equity. The other partners -- Bank of Baroda and Carmel Point Investments, owned by Warburg Pincus, own 44 per cent and 26 per cent, respectively, in the insurer.Andhra Bank had made an attempt earlier to sell its stake in the life insurance company but it did not yield any result."The board of the merged bank will decide on exiting India First, based on valuation and according to the regulatory (Irdai) guidelines," Rai told in an interview.Union Bank also has a life insurance venture -- Star Union Dai-ichi Life -- with a 25.10 per cent equity, along with Bank of India and Dai-ichi Life Holdings of Japan."Both these insurance ventures are doing very well. Looking at SBI Life and others, I feel valuations of insurance companies are only going to improve going forward. So, exiting at the right time, with the right valuation is very important," Rai said.Besides, Andhra Bank has a banking subsidiary in Malaysia -- India International Bank Malaysia. It holds a 25 per cent stake in the bank and the balance is owned by Bank of Baroda and Indian Overseas Bank."We may look at existing the Malaysian banking subsidiary as well if there is a good valuation," Rai said, adding that the board will take a decision at an appropriate time.The amalgamated bank, however, will continue with Corp Bank Securities, the wholly-owned brokerage of Corporation Bank, he said."We were also planning to enter the brokerage business. But when this amalgamation was announced, and when we looked at this subsidiary of Corporation Bank, we shelved our plans. We will fully leverage its capabilities now," Rai said.Apart from providing broking services to institutional clients, Corp Bank Securities also distributes mutual funds and trade in government bonds, certificate of deposits, treasury bills, commercial papers and investment in fixed deposits.In FY19, it earned an income of Rs 9.73 crore and a profit after tax of Rs 7.68 crore.There are three other mergers of public sector banks under the mega consolidation plan.Punjab National Bank will takeover Oriental Bank of Commerce and United Bank of India to form the nation's second largest lender; Canara Bank will integrate Syndicate Bank with itself, and Allahabad Bank will be merged into Indian Bank.Following the consolidation, there will be seven large public sector banks, and five smaller ones. There were as many as 27 state-run banks in 2017 when the SBI took over five of its associates and Bharatiya Mahila Bank.In 2019, Vijaya Bank and Dena Bank got merged with Bank of Baroda, making it the third largest state-run bank. HV BEN SHW BALBAL

Post merger, Union Bank may sell Andhra Bank's stake in life insurance

(Image source- Reuters) <ul><li>The members of nine bank unions are all set to stage a <keyword id="6358138" type="PERSON" weightage="20" keywordseo="Strike">strike</keyword> on 26 December as part of a nationwide protest against the Indian government’s decision to merge <keyword id="6368859" type="COMPANY" weightage="20" keywordseo="vijaya-bank">Vijaya Bank</keyword> and <keyword id="6359442" type="COMPANY" weightage="20" keywordseo="dena-bank">Dena Bank</keyword> with the <keyword id="6358007" type="DOMAIN" weightage="20" keywordseo="bank-of-baroda">Bank of Baroda</keyword>. </li><li>As a result, banking services at a number of public-sector banks will be affected, which includes ATM operations and cheque clearances. </li><li>The strike has been called by the United Forum of Bank Unions (UFBU) and will involve the participation of around 1 million bank employees. </li><li>It comes in addition to a strike coordinated by the <keyword id="723485" type="ORGANIZATION" weightage="20" keywordseo="All-India-Bank-Officers-Confederation">All India Bank Officers' Confederation</keyword> (AIBOC), which falls under the UFBU, in the last few days in pursuit of higher <keyword id="6356975" type="UNKNOWN" weightage="20" keywordseo="wages">wages</keyword> for bank employees. </li></ul>The members of nine bank unions are all set to stage a strike on 26 December as part of a nationwide protest against the Indian government’s decision to <a href="https://www.businessinsider.in/indias-government-is-merging-three-state-owned-lenders-to-create-one-of-the-countrys-largest-banks/articleshow/65853052.cms">merge three state-owned lenders</a> - Bank of Baroda, Vijaya Bank and Dena Bank. As a result, banking services at a number of public-sector banks will be affected including ATM operations and cheque clearances. Despite the participation of the employees of some private banks, the operations of private banks are expected to continue as normal. The strike has been called by the United Forum of Bank Unions (UFBU), an umbrella organisation for India’s nine major bank unions, and will involve the participation of around 1 million bank employees. It comes in addition to a strike coordinated by the All India Bank Officers' Confederation (AIBOC), which falls under the UFBU, in the last few days in pursuit of higher wages for bank employees. The government decided to merge the mammoth Bank of Baroda with the smaller regional players Dena Bank and Vijaya Bank in September 2018. While the reasons for the move were manifold, it was mostly aimed at creating a larger bank with a strong capital buffers and helping Dena Bank, which has a non-performing ratio of over 11%, improve its balance sheet and be taken off the central bank’s Prompt Corrective Action watchlist. The merged entity will become the third-largest bank in India and have nearly 9,500 branches. While the decision has been welcomed in some circles, it has largely been opposed by the employees of these banks. This is mostly due to the fact that the <keyword id="42411" type="PERSON" weightage="20" keywordseo="Merger">merger</keyword> is expected to result in a number of job cuts, especially since overlapping departments will be trimmed down to size, and the closure of branches that are in close proximity to one another. It could also provide further room for private banks to muscle in on the market share of public-sector banks. Separately, the Indian Banks Association (IBA), an industry lobby, has been engaged in negotiations with unions since November last year over a possible wage revision. A lack of progress led to <a href="https://www.businessinsider.in/nearly-1-million-bank-employees-in-india-are-set-to-go-on-strike-this-week/articleshow/64366473.cms">a nationwide strike</a> by employees at the end of May 2018. The IBA upped its revision proposal from 2% to <a href="https://www.business-standard.com/article/economy-policy/indian-banks-association-offers-6-wage-hike-unions-reject-the-offer-118073100058_1.html">6%</a> at the end of July, but this was rejected as employees were expecting a raise along the lines of the 15% hike received in February 2015 during the last wage revision discussions. The IBA subsequently hiked its offer to 8%, which was <a href="https://economictimes.indiatimes.com/industry/banking/finance/banking/bank-unions-reject-ibas-8-wage-hike-offer/articleshow/66891829.cms">rejected by unions</a> on 1 December. The nationwide strike by the bank unions is expected to lead to a higher wage offer, although the IBA won’t have much space to maneuver since public-sector banks are burdened with a lion’s share of the country’s bad loans. A higher wage hike proposal could offset the discomfort caused by the merger of the three public-sector lenders, which is expected to be completed early next year following the approval of the <a href="https://www.thehindubusinessline.com/money-and-banking/finmins-alternative-mechanism-gives-nod-for-bob-dena-vijaya-bank-merger/article25798898.ece">scheme of amalgamation</a> last week. SEE ALSO: <a href="https://www.businessinsider.in/indias-government-is-merging-three-state-owned-lenders-to-create-one-of-the-countrys-largest-banks/articleshow/65853052.cms">India’s government is merging three state-owned lenders to create one of the country’s largest banks</a> <a href="https://www.businessinsider.in/nearly-1-million-bank-employees-in-india-are-set-to-go-on-strike-this-week/articleshow/64366473.cms">Nearly 1 million bank employees in India are set to go on strike this week</a>

A number of unions in India are protesting against the government’s decision to merge three state-owned banks

On Wednesday, Punjab National Bank , the third largest public lender in the country, shocked <keyword id="6355178" type="UNKNOWN" weightage="100" keywordseo="Dalal-Street">Dalal Street</keyword> after it posted the biggest net loss in India's banking history at Rs 5,367 crore. 
 
After PNB's results, the total losses of nine out of 18 public sector banks who have declared their March earnings till May 17 now stands at a whopping Rs 14,808 crore. 
 The crisis in the <keyword id="34507" type="UNKNOWN" weightage="100" keywordseo="banking-sector">banking sector</keyword> is hitting new lows every day after the Reserve Bank of India's decision to force banks to acknowledge their bad assets in their balance sheets by March 2017. 
 Aside from PNB <keyword id="6358007" type="CITY" weightage="100" keywordseo="Bank-of-Baroda">Bank of Baroda</keyword> gave a similar jolt to the Street when it reported quarterly losses of Rs 3,230 crore on Friday. The third highest loss figure this quarter has come from <keyword id="6368628" type="CITY" weightage="100" keywordseo="Syndicate-Bank">Syndicate Bank</keyword> which reported losses of Rs 2,158 crore on Tuesday. 
 
The PSU banking sector has been the biggest drag on the market so far this month with the Nifty PSU Bank index slumping 6 per cent in the past five days. 
 
The total amount of March quarter losses could still rise with six PSBs scheduled to report their numbers in the coming week with the mother of them SBI yet to come. 
 
Image credit: Indiatimes

PSU banks in trouble: Nine banks report net losses of Rs 14,000 crore so far

Mumbai, Dec 24 () The RBI believes that the country can create some global banking majors if the ongoing mergers of state-owned banks achieve desired impacts of creating stronger and well-capitalised lenders of global scale.
Currently, there is not a single domestic lender in the global top 50 list, which since the 2008 global financial meltdown has been dominated disproportionately by Chinese lenders.
Soon after the merger of its five associates, the SBI had a short stint in the global 50 list with a balance-sheet of around USD 450 billion, but soon slipped following the massive pile of bad loans in the system, which shrank its balance-sheet.
As a way to recapitlise the crippled state-owned lenders, the government had in August announced merger of 10 PSBs into four. Under the scheme, Oriental Bank of Commerce and United Bank of India will merge with Punjab National Bank creating the second largest public sector lender after the SBI; Syndicate Bank would merge with Canara Bank; Union Bank would take over Andhra Bank and Corporation Bank; and Allahabad Bank would merge with Indian Bank.
The process, likely to be completed by March, will see the number of state-owned banks coming down to 12 from 19 now and as many as 27 in 2017.
In FY19, the government had merged Vijaya Bank and Dena Bank with Bank of Baroda and in 2017, the State Bank absorbed five of its associates along with the Bharatiya Mahila Bank.
"The merger of PSBs is likely to transform the face of our banking sector with the emergence of stronger, well-capitalised banks aided by cutting-edge technology and state-of-the-art payment systems. Our banks have the potential to become global baking leaders," the Reserve Bank of India said in its annual report on 'trends &amp; progress of banking 2018-19', released on Tuesday.
The report also warned banks about the rising competition from fintech and other large tech companies and noted that the global growth slowdown has impacted the financial system worldwide, especially banks, which is visible in their plunging profitability and shrinking balance-sheets.
"Banks are facing increasing challenges from non-traditional players such as fintech and big technology firms which are taking advantage of digital innovation," the report warned.
It can be noted that the global tech giants like Google, Amazon, Whatsap/Facebook and domestic players like Paytm and tens of dozens of small tech players are chipping away a large portion of the payments market. On the crippled NBFCs, the report expects them to come out of the mess faster as the liquidity situation has been improving since recent months.
As liquidity strains recede, and solvency shored up, NBFCs are expected to regain their niche and expand their reach, the report said.
Going forward, the need of the hour is to continue the policy coordination with a view to developing the banking system on one hand and securing a competitive and resilient non-banking sector, it added. BEN BAL

You Searched For "bank of baroda balance" and got 8 results

Bank of Baroda to raise up to Rs 13,500 cr

PTI

Bank of Baroda completes IT integration with 132 branches of erstwhile Vijaya Bank

PTI

Additional tier-I bond holders to be hit by Rs 10,800 cr if Yes Bank restructuring goes through

PTI

India’s government is merging three state-owned lenders to create one of the country’s largest banks

Dilsher Dhillon

Post merger, Union Bank may sell Andhra Bank's stake in life insurance

PTI

A number of unions in India are protesting against the government’s decision to merge three state-owned banks

Dilsher Dhillon

PSU banks in trouble: Nine banks report net losses of Rs 14,000 crore so far

BI India Bureau

RBI optimistic about mergers creating global scale PSBs

PTI

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