Vijaya Bank
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Vijaya Bank was a PSU bank which was merged with
Bank of Baroda Bank of Baroda (BOB or BoB) is an Public sector banks in India, Indian government Public sector bank headquartered in Vadodara, Gujarat. It is the third largest Public sector banks in India, public sector bank in India after State Bank of India ...
on 1 April 2019 with its head office in
Bangalore Bengaluru, also known as Bangalore (List of renamed places in India#Karnataka, its official name until 1 November 2014), is the Capital city, capital and largest city of the southern States and union territories of India, Indian state of Kar ...
,
Karnataka Karnataka ( ) is a States and union territories of India, state in the southwestern region of India. It was Unification of Karnataka, formed as Mysore State on 1 November 1956, with the passage of the States Reorganisation Act, 1956, States Re ...
, 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. As of March 2017, the bank had a network of 2031 branches throughout the country and over 4,000 customer touch points including 2001 ATMs.


History

Vijaya Bank was established by a group of farmers led by A. B. Shetty on 23 October 1931 in
Mangalore Mangaluru (), formerly called Mangalore ( ), is a major industrial port city in the Indian state of Karnataka and on the west coast of India. It is located between the Laccadive Sea and the Western Ghats about west of Bengaluru, the st ...
,
Dakshina Kannada Dakshina Kannada district is located in the states and territories of India, state of Karnataka in India, with its headquarters in the coastal city of Mangaluru. The district covers an area nestled in between the Western Ghats to its east and the ...
district of
Princely State of Mysore The Kingdom of Mysore was a geopolitical realm in South India, southern India founded in around 1399 in the vicinity of the modern-day city of Mysore and prevailed until 1950. The territorial boundaries and the form of government transmuted su ...
(present-day
Karnataka Karnataka ( ) is a States and union territories of India, state in the southwestern region of India. It was Unification of Karnataka, formed as Mysore State on 1 November 1956, with the passage of the States Reorganisation Act, 1956, States Re ...
). Since it was established on day of
Vijayadashami Vijayadashami (), more commonly known as Dassahra in Hindi, and also known as Dashāhra or Dashain in Bhojpuri, Maithili and Nepali, is a major Hindu festival celebrated every year at the end of Durga Puja and Navaratri, Navarahtri. It is ob ...
, it was named "Vijaya Bank". 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
Bangalore Bengaluru, also known as Bangalore (List of renamed places in India#Karnataka, its official name until 1 November 2014), is the Capital city, capital and largest city of the southern States and union territories of India, Indian state of Kar ...
on 11 November 1969. The bank was
nationalised 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 contrasts with ...
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 is at Mahatma Gandhi Road, Bangalore. It was inaugurated on 26 October 1984.


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 Bank of Baroda (BOB or BoB) is an Public sector banks in India, Indian government Public sector bank headquartered in Vadodara, Gujarat. It is the third largest Public sector banks in India, public sector bank in India after State Bank of India ...
and Dena Bank into a single bank as an effort to consolidate the country's banking system. The amalgamated bank was set to become the third biggest bank in India with a total business of more than . The boards of the three banks are to meet to consider the proposal. The agenda behind the amalgamation of the banks was to lower
Non-performing asset 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 they reduce profitability. They are ofte ...
s. The Gross NPA OF the Bank of Baroda, Vijaya Bank and Dena Bank is 12.4%, 6.9% and 22% respectively. 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. Vijaya Bank that has merged with Bank of Baroda has built a museum that dedicated to its history.


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. 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.


Financial inclusion initiatives

The Bank has been actively pursuing the agenda of
financial inclusion Financial inclusion is the availability and equality of opportunities to access financial services. It refers to processes by which individuals and businesses can access appropriate, affordable, and timely financial products and services—which ...
. 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. It 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 Direct Benefit Transfer or DBT is an attempt to change the mechanism of transferring subsidies launched by Government of India on 1 January 2013. This scheme or program aims to establish a Giro system to transfer subsidies directly to the peop ...
(DBT) programme of the Government of India.


References


External links

* {{Banking in India Defunct banks of India Banks based in Karnataka Companies based in Bengaluru Banks established in 1931 Banks disestablished in 2019 Companies nationalised by the Government of India Banks established in Mangalore Indian companies disestablished in 2019 Indian companies established in 1931 Companies formerly listed on the National Stock Exchange of India Companies formerly listed on the Bombay Stock Exchange Bank of Baroda