Question : Bank Mergers

(a) the aims and objectives of the bank merger policy;

(b) whether a number of bank branches have been closed due to merger of public sector banks policy, if so, the details thereof, bank-wise and State-wise including Maharashtra;

(c) the action taken by the Government regarding negative impact on rural development caused by the closure of these banks along with the outcome thereof; and

(d) the alternative arrangements made for rural people and farmers affected by the closure of the banks at these places?

THE MINISTER OF STATE FOR FINANCE


(a) to (d): The objective of amalgamation of the banks is to facilitate consolidation among Public Sector Banks (PSBs) to create strong and competitive banks capable of achieving economies of scale and realisation of synergy benefits with wider product and service offering for customers.
The amalgamation of Vijaya Bank and Dena Bank into Bank of Baroda (BoB) was effected on 1.4.2019. As per the input received from BoB, the total number of branches of the amalgamating banks i.e. BoB, erstwhile Dena Bank (eDB) and erstwhile Vijaya Bank (eVB), as on 31.3.2019, was 9,447 which increased to 9,481 branches as part of the amalgamated entity, as on 29.2.2020, and the rural branches too increased from 2,930 to 2,934 during this period. State wise position of bank branches of BoB, eDB and eVB, as on 31.03.2019, vis-a-vis position of bank branches of amalgamated entity, as of 28.02.2020, is annexed. Further, BoB has apprised that the rural footprint of the amalgamated bank has also increased since amalgamation and with the increased reach and enhanced business engagement with the rural people and farmers, visible gains are incurred including, inter alia, priority sector lending has increased by Rs. 4,253 crore to Rs. 2,23,128 crore, as on 31.12.2019, the cumulative balance of Kisan Credit Cards, increased by Rs 1,796 crore to Rs 38,325 crore, as on 7.3.2020, and in 11 months since amalgamation agriculture loan disbursements have increased by Rs. 46,690 crore and access to credit through overdraft amount advanced to the Pradhan Mantri Jan Dhan Yojana accounts has increased by Rs 11.38 crore.
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