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Dena Bank

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Dena Bank
FormerlyDevkaran Nanjee Banking Company Ltd
Company typePublic
ISININE077A01010
IndustryBanking
financial services
Founded26 May 1938; 86 years ago (1938-05-26)
FounderDevkaran Nanjee
Defunct1 April 2019; 5 years ago (2019-04-01)
FateMerged with Bank of Baroda
SuccessorBank of Baroda
Headquarters(erstwhile) C-10, G Block, Bandra-Kurla Complex, Bandra (E),
Mumbai, Maharashtra
,
India
Number of locations
1,872 branches[1] (2018)
Area served
India
Services
RevenueDecrease ₹8,932.23 crore (US$1.1 billion)[1] (2018)
Decrease ₹1,171.16 crore (US$140 million)[1] (2018)
Decrease ₹−1,923.15 crore (US$−230 million)[1] (2018)
Total assetsDecrease ₹120,859.79 crore (US$14 billion)[1] (2018)
Number of employees
13,613 (2018)[1]
Capital ratio11.09% (2018)[1]

Dena Bank was a government-owned bank that in 2019 merged with Bank of Baroda. It was headquartered in Mumbai 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

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Dena Bank[2][3][4][5] was founded on 26 May 1938 by the sons of Devkaran Nanjee - Choonilal Devkaran Nanjee, Pranlal Devkaran Nanjee & 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 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

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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.[6][7][8] 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 ₹2.0 trillion or US$24 billion in 2023). 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.[8][9] Earlier that year, Dena Bank had been brought under the Prompt Corrective Action (PCA) framework due to its high non-performing loans.[10] 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,[11] and Dena Bank was the weakest among the three in terms of its total business size.[9]

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.[12]

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.[13]

See also

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References

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  1. ^ a b c d e f g "Financials". Dena Bank. Retrieved 15 March 2019.
  2. ^ "DENA BANK - Outcome Of Board Meeting". @businessline. Retrieved 30 August 2018.
  3. ^ "Dena Bank has shifted its focus on recovery of loans: Ramesh Singh, ED, Dena Bank". Zee Business. 24 August 2018. Retrieved 30 August 2018.
  4. ^ "Dena Bank standalone Jun-2018 NII at Rs 742.74 crore". Moneycontrol. 6 August 2018. Retrieved 30 August 2018.
  5. ^ "After Dena Bank, RBI may put restrictions on 2 more lenders under PCA". The Economic Times. 13 May 2018. Retrieved 30 August 2018.
  6. ^ "Dena Bank, Vijaya Bank, Bank Of Baroda To Be M". NDTV.com. Retrieved 17 September 2018.
  7. ^ "Bank of Baroda, Vijaya Bank and Dena Bank to be merged". The Economic Times. 17 September 2018. Retrieved 17 September 2018.
  8. ^ a b Nair, Remya (17 September 2018). "Govt proposes merger of BoB, Dena, Vijaya Bank". Mint. Retrieved 17 September 2018.
  9. ^ a b "Dena board clears merger with BoB and Vijaya Bank". The Hindu. 24 September 2018. ISSN 0971-751X. Retrieved 30 March 2019.
  10. ^ "RBI puts Dena Bank under prompt corrective action". The Hindu. PTI. 12 May 2018. ISSN 0971-751X. Retrieved 30 March 2019.
  11. ^ "Vijay Denanath Baroda Bank: Challenges of the urge to merge". The Economic Times. 18 September 2018. Retrieved 30 March 2019.
  12. ^ "Vijaya Bank, Dena Bank amalgamation with BoB is effective from April 1; here's the share exchange plan". Business Today. 21 February 2019. Retrieved 14 March 2019.
  13. ^ 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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