Vijaya Bank

Vijaya Bank[2][3][4] was a public sector bank with its corporate office in Bengaluru, Karnataka, India. It was one of the nationalised banks in India. The bank offered a wide range of financial products and services to customers through its various delivery channels. The bank had a network of 2031 branches (as of March 2017) throughout the country and over 4000 customer touch points including 2001 ATMs.[5][6]

Vijaya Bank
Public sector undertaking
Traded as
ISININE705A01016
IndustryBanking
Financial services
FateMerged with Bank of Baroda
SuccessorBank of Baroda
Founded23 October 1931 (1931-10-23)
Mangalore, Madras Presidency, British India
FounderAttavar Balakrishna Shetty
Defunct1 April 2019 (2019-04-01)
HeadquartersNo. 41/2, M G Road,
Bangalore, Karnataka
,
India
Number of locations
2,136 branches
2,155 ATMs[1] (2018)
Area served
India
ServicesConsumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, wealth management
Revenue ₹14,190.45 crore (US$2.0 billion)[1] (2018)
₹3,098 crore (US$430 million)[1] (2018)
₹727 crore (US$100 million)[1] (2018)
Total assets₹177,632.04 crore (US$25 billion)[1] (2018)
Total equity₹10,627.19 crore (US$1.5 billion)[1] (2018)
OwnerGovernment of India (68.77%)
Number of employees
16,079[1] (2018)
Capital ratio13.90% (2018)[1]
Websitewww.vijayabank.com
Attavar Balakrishna Shetty, Founder Chairman of Vijaya Bank

On 17 September 2018, the Government of India proposed the merger of Vijaya Bank and Dena Bank with the Bank of Baroda, pending approval from the boards of the three banks.[7] The merger was approved by the Union Cabinet and the boards of the banks on 2 January 2019. Under the terms of the merger, 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 merger is effective from 1 April 2019.[8]. Vijaya Bank that has merged with Bank of Baroda has built a museum that dedicates to its history.[9]

History
Vijaya Bank Founders Branch Mangaluru

Vijaya Bank was established by a group of farmers led by A. B. Shetty on 23 October 1931[10] in Mangaluru in Dakshina Kannada District of Karnataka State. Since it was established on Vijayadashami Day, it was named 'Vijaya Bank'.[11]

During the economic chaos created out of the Great Depression of 1927–30, Shetty approached leading Bunt personalities to start a bank with the objective of extending credit facilities at a lower rate of interest to enable the farmers to cultivate their lands and prevent them from falling into the clutches of money lenders. Accordingly, Shetty involved 14 Bunts and established Vijaya Bank on 23 October 1931. In the beginning the bank had an authorised capital of ₹5 lakh and an issued capital of ₹2 lakh. The paid up capital was ₹8,670.

Growth and nationalisation

The bank grew steadily since its inception. The bank became a scheduled bank in 1958. . Under the chairmanship of Shri. Mulki Sunder Ram Shetty, Vijaya Bank steadily grew into a large All India Bank with 9 smaller banks merging with it during 1963–1968. In 1965, the bank registered its own logo. The bank's head office was shifted to Bengaluru on 11 November 1969. The bank was nationalised on 15 April 1980. At the time of nationalization, the bank had 571 branches, with a total business of ₹605.95 crore and a staff strength of 9059.

The present head office building of the Bank at Mahatma Gandhi Road, Bengaluru was inaugurated on 26 October 1984. The current MD & CEO of VijayaBank is Shri R.A.Sankara Narayanan[12]

Amalgamation

On 17 September 2018, the Finance Ministry of the Government of India proposed to amalgamate 3 state run banks, viz. Vijaya Bank, Bank of Baroda and Dena Bank into a single bank as an effort to consolidate the country's banking system.[13][14] The amalgamated bank was set 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). The boards of the three banks are to meet to consider the proposal.[15] The agenda behind the amalgamation of the banks was to lower Non-performing assets. The Gross NPA OF the Bank of Baroda, Vijaya Bank and Dena Bank is 12.4%, 6.9% and 22% respectively.

Business operations

The bank's total business is over ₹2,29,000 crore comprising deposits of ₹1,33,012 crore and advances of ₹96,821 crore as at 31 March 2017. Basically being a retail bank, its topline growth owes quite a lot to the retail segments. Retail advances of the bank constitute 30% of the gross credit.[16]

As on 31 March 2017, the bank had a wide branch network of 2031 branches. The bank has 2001 ATMs as on 31 March 2017. Vijaya Bank provides access to over 2.21 lakh ATMs connected under National Financial Switch across the country.[17]

Financial inclusion initiatives

The Bank has been actively pursuing the agenda of financial inclusion. The bank's initiatives in this direction aim at financial empowerment and reaching banking services to the rural masses. The Bank has been opening Basic Savings Bank Accounts under Pradhan Mantri Jan Dhan Yojana and providing all the account holders with Rupay debit cards. The bank participates in promoting social security schemes such as Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana and Atal Pension Yojana. The bank is also implementing the modified Direct Benefit Transfer (DBT) programme of the Government of India.[18]

Corporate social responsibility

The bank has provided sanitation facilities to 56 govt. schools mostly in rural areas. The bank has established 32 rural health centres where patients are provided primary healthcare and medicine free of cost.[19] It has also has devised a unique programme to adopt girl children. The policy of Girl Child Adoption was introduced by the bank in 2011 under which the bank adopts girl children from SC/ ST/ OBC/ economically weaker sections / backward areas/ poor families from the age of 5 years onwards to promote girl child education, mostly from rural and backward areas. The bank has adopted 1163 girl children all over the country.[19]

References
  1. "Annual Report 2017-18" (PDF). Vijaya Bank. Retrieved 14 March 2019.
  2. Mehta, Sangita (23 July 2018). "Vijaya Bank reports 41% dip in profit, stock up 4%". The Economic Times. Retrieved 29 July 2018.
  3. Mehta, Sangita (26 July 2018). "Vijaya Bank's NPAs could fall below 3% by March: RA Sankara Narayanan". The Economic Times. Retrieved 29 July 2018.
  4. "Vijaya Bank registers Rs. 144 crore profit in Q1". The Hindu. Special Correspondent. 25 July 2018. ISSN 0971-751X. Retrieved 29 July 2018.CS1 maint: others (link)
  5. https://www.vijayabank.com/About-Us/Inception
  6. "Vijaya Bank to add more branches this year". The Hindu Business Line. 20 May 2016. Retrieved 14 February 2020.
  7. "Bank of Baroda, Vijaya Bank and Dena Bank to be merged". The Economic Times. 18 September 2018. Retrieved 14 March 2019.
  8. "Vijaya Bank, Dena Bank merger with BoB to be effective from April 1; here's the share exchange plan". Business Today. Retrieved 14 March 2019.
  9. "Vijaya Bank Museum inaugurated".
  10. "A banker erased from memory". Deccan Herald. Retrieved 27 February 2012.
  11. Vijaya Bank - Inception Archived 8 September 2008 at the Wayback Machine
  12. http://www.financialservices.gov.in/notification/appointment-shri-ra-sankara-narayanan-mdceo-vijaya-bank
  13. "Dena Bank, Vijaya Bank, Bank Of Baroda To Be Merged, Says Government". NDTV.com. Retrieved 17 September 2018.
  14. "Bank of Baroda, Vijaya Bank and Dena Bank to be amalgamated". The Economic Times. 17 September 2018. Retrieved 17 September 2018.
  15. Nair, Remya (17 September 2018). "Govt proposes merger of BoB, Dena, Vijaya Bank". https://www.livemint.com/. Retrieved 17 September 2018. External link in |work= (help)
  16. "Financial Statements / Position & Press Realeases(sic)". www.vijayabank.com. Retrieved 30 March 2019.
  17. "Vijaya Bank - About Us". www.vijayabank.com. Retrieved 30 March 2019.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.