Dena Bank was a government-owned bank that in 2019 merged with

Bank of Baroda Bank of Baroda (BOB or BoB) is an Indian public sector bank headquartered in Vadodara, Gujarat. It is the second largest public sector bank in India after State Bank of India, with 132 million customers, a total business of US$218 billion, ...

. It was headquartered in

Mumbai Mumbai (, ; also known as Bombay — List of renamed Indian cities and states#Maharashtra, the official name until 1995) is the capital city of the Indian States and union territories of India, state of Maharashtra and the ''de facto'' fin ...

and had 1,874 branches. The bank was founded in 1938 as a privately owned Bank. In 1969 the Government of India nationalized ''Dena Bank''.

History

Dena Bank was founded on 26 May 1938 by the sons of Devkaran Nanjee - Choonilal Devkaran Nanjee ,

Pranlal Devkaran Nanjee Pranlal Devkaran Nanjee (11 June 1894 – 27 July 1956) was a noted Indian banker, businessman and philanthropist from Bombay, India. Birth & family life He was born on 11 June 1894 at Porbandar, the second son of Seth Devkaran Nanjee. He was m ...

& other family members under the name Devkaran Nanjee Banking Company. It adopted its new name, Dena (Devkaran Nanjee) Bank, when it was incorporated as a public company in December 1939. In July 1969, the government of India

nationalized Nationalization (nationalisation in British English) is the process of transforming privately-owned assets into public assets by bringing them under the public ownership of a national government or state. Nationalization usually refers to p ...

Dena Bank, along with thirteen other major banks. Dena Bank thereby became a Public Sector bank constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970.

Amalgamation

On 17 September 2018, the Finance Ministry of the government of India proposed to merge three state run banks —

Vijaya Bank Vijaya Bank was a PSU bank which was merged with Bank of Baroda on 1 April 2019 with its head office in Bangalore, Karnataka, India. It was one of the nationalised banks in India. The bank offered a wide range of financial products and service ...

, and Dena Bank — into a single bank. The amalgamated bank was estimated to become the third biggest bank in India with a total business of more than . Some of the main stated reasons for the merger were to help the weaker banks improve their operational efficiency, increase their customer base and market reach, and to help them raise capital without depending on government funds at all. Earlier that year, Dena Bank had been brought under the

Prompt Corrective Action The Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA, ), passed during the savings and loan crisis in the United States, strengthened the power of the Federal Deposit Insurance Corporation. It allowed the FDIC to borrow direc ...

(PCA) framework due to its high

non-performing loan A non-performing loan (NPL) is a bank loan that is subject to late repayment or is unlikely to be repaid by the borrower in full. Non-performing loans represent a major challenge for the banking sector, as it reduces the profitability of banks, and ...

s. At the time of the proposal to merge, the gross NPA ratios of Bank of Baroda, Vijaya Bank and Dena Bank were 12.4%, 6.9% and 22% respectively, and Dena Bank was the weakest among the three in terms of its total business size. The

Union Cabinet The Union Council of Ministers Article 58 of the ''Constitution of India'' is the principal executive organ of the Government of India, which is responsible for being the senior decision making body of the executive branch. It is chaired by t ...

and the boards of the banks approved the merger on 2 January 2019. Under the terms of the amalgamation, Dena Bank and Vijaya Bank shareholders received 110 and 402 equity shares of the Bank of Baroda, respectively, of face value 2 for every 1,000 shares they held. The amalgamation became effective from 1 April 2019. Bank of Baroda announced that it would auction the Dena Corporate Centre (Dena Bank's head office) at Bandra Kurla Complex, Mumbai in September 2019.

References

{{Authority control Defunct banks of India Banks based in Mumbai Banks established in 1938 Banks disestablished in 2019 Companies nationalised by the Government of India Indian companies established in 1938 Companies formerly listed on the Bombay Stock Exchange Indian companies disestablished in 2019 Companies listed on the National Stock Exchange of India Companies listed on the Bombay Stock Exchange

History

Amalgamation

See also

References