With Dena Bank and Vijaya Bank merging with Bank of Baroda, the Non-performing Assets (NPAs) of the amalgamated entity in Gujarat stands at Rs 8,890 crore, which is 23 per cent of the total bad loans that existed in the state as on December 2018.
“The (gross) NPAs of this entity in Gujarat is Rs 8,890 crore,” confirmed K V Tulshibagwale, General Manager (Ahmedabad Zone) of Bank of Baroda. As on December 2018, the percentage of gross NPAs of Dena Bank stood at 12.45 per cent, while that of the Bank of Baroda and Vijaya Bank was 11.88 per cent and 4.27 per cent respectively in Gujarat.
If the NPAs owned by the public sector banks are taken into account, then the merged entity will account for 32 per cent of Rs 27,602 crore bad loans that existed in Gujarat.
Tulshibagwale said the highest market share of the amalgamated entity — about 22 per cent — will be in Gujarat. “The other key states like Maharashtra, Karnataka, Rajasthan and Uttar Pradesh will have a market share of 8-10 per cent… In Gujarat, our total deposits were Rs 1,56,900 crore as on December 2018 and advances were Rs 77,000 crore,” said Tulshibagwale, adding the priority sector loans are Rs 45,700 crore, which is 17 per cent of the disbursed in the state. In agriculture, the new entity will have a total outstanding of Rs 19,500 crore, while MSMEs 15,800 crore.
In Gujarat, all the three banks together will have 1,714 branches ( 18 per cent of all bank branches) and 2,169 ATMs that is 20 per cent of total machines.
“Branding of all three entities will be retained in the interim and will be changed in a phased manner to ensure minimum disruption to the customers,” he said adding the entire process will take about six months. The official added no employee of any of the three banks will be laid off, however, some of the branches in close proximity to each other could be relocated for business reasons.