Dena Bank

Dena Bank Ltd was an Indian public sector bank. It was headquartered in Mumbai and had 1,874 branches. The bank was founded in 1938 and the Indian government nationalized it in 1969.

Dena Bank Ltd
FormerlyDevkaran Nanjee Banking Company Ltd
TypePublic sector undertaking
ISININE077A01010
IndustryBanking
financial services
FateAmalgamated with Bank of Baroda
SuccessorBank of Baroda
Founded26 May 1938 (1938-05-26)
FounderDevkaran Nanjee
Defunct1 April 2019 (2019-04-01)
HeadquartersC-10, G Block, Bandra-Kurla Complex, Bandra (E),
Mumbai, Maharashtra
,
India
Number of locations
1,872 branches[1] (2018)
Area served
India
Servicesconsumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, private equity, savings, Securities, asset management, wealth management
Revenue ₹8,932.23 crore (US$1.3 billion)[1] (2018)
₹1,171.16 crore (US$160 million)[1] (2018)
₹−1,923.15 crore (US$−270 million)[1] (2018)
Total assets ₹120,859.79 crore (US$17 billion)[1] (2018)
OwnerGovernment of India (80.74%)[1]
Number of employees
13,613 (2018)[1]
Capital ratio11.09% (2018)[1]
Websitewww.denabank.com

On 17 September 2018, the Government of India proposed the amalgamation of Dena Bank and Vijaya Bank with the Bank of Baroda, pending approval from the boards of the three banks.[2] The Union Cabinet 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.[3]

History

Dena Bank[4][5][6][7] was founded on 26 May 1938 by the family of Devkaran Nanjee, 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 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. Under the provisions of the Banking Regulations Act 1949, in addition to the business of banking, a bank can undertake other businesses as specified in Section 6 of the Banking Regulations Act, 1949.

Amalgamation

On 17 September 2018, The Finance Ministry of the Government of India proposed to merge three state run banks — Vijaya Bank, Bank of Baroda, and Dena Bank — into a single bank.[8][9][10] The amalgamated bank was estimated to become the third biggest bank in India with a total business of more than ₹1,482,000,000,000 (equivalent to ₹1.6 trillion or US$22 billion in 2019). 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.[10][11] Earlier that year, Dena Bank had been brought under the Prompt Corrective Action (PCA) framework due to its high non-performing loans.[12] 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,[13] and Dena Bank was the weakest among the three in terms of its total business size too.[11]

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.[14]

See also

References
  1. "Financials". Dena Bank. Retrieved 15 March 2019.
  2. "Bank of Baroda, Vijaya Bank and Dena Bank to be merged". The Economic Times. 18 September 2018. Retrieved 5 April 2019.
  3. "Vijaya Bank, Dena Bank amalgamation with BoB is effective from April 1; here's the share exchange plan". Business Today. Retrieved 14 March 2019.
  4. "DENA BANK - Outcome Of Board Meeting". @businessline. Retrieved 30 August 2018.
  5. "Dena Bank has shifted its focus on recovery of loans: Ramesh Singh, ED, Dena Bank". Zee Business. 24 August 2018. Retrieved 30 August 2018.
  6. "Dena Bank standalone Jun-2018 NII at Rs 742.74 crore". Moneycontrol. Retrieved 30 August 2018.
  7. "After Dena Bank, RBI may put restrictions on 2 more lenders under PCA". The Economic Times. 13 May 2018. Retrieved 30 August 2018.
  8. "Dena Bank, Vijaya Bank, Bank Of Baroda To Be M". NDTV.com. Retrieved 17 September 2018.
  9. "Bank of Baroda, Vijaya Bank and Dena Bank to be merged". The Economic Times. 17 September 2018. Retrieved 17 September 2018.
  10. Nair, Remya (17 September 2018). "Govt proposes merger of BoB, Dena, Vijaya Bank". Mint. Retrieved 17 September 2018.
  11. "Dena board clears merger with BoB and Vijaya Bank". The Hindu. Special Correspondent. 24 September 2018. ISSN 0971-751X. Retrieved 30 March 2019.CS1 maint: others (link)
  12. "RBI puts Dena Bank under prompt corrective action". The Hindu. PTI. 12 May 2018. ISSN 0971-751X. Retrieved 30 March 2019.CS1 maint: others (link)
  13. "Vijay Denanath Baroda Bank: Challenges of the urge to merge". The Economic Times. 18 September 2018. Retrieved 30 March 2019.
  14. Ghosh, Shayan (12 September 2019). "Bank of Baroda to sell Dena Bank head office for at least ₹530 crore". Mint. Retrieved 12 September 2019.
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