Dena Bank
| Company type | Public sector bank |
|---|---|
| Industry | Banking, Financial services |
| Founded | 1938 |
| Founder | Choonilal Devkaran Nanjee, Pranlal Devkaran Nanjee, and other relatives |
| Defunct | 2019 |
| Fate | Merged with Bank of Baroda |
| Headquarters | Mumbai , India |
Area served | India |
| Products | Banking, Financial services |
Dena Bank was a public sector financial institution that merged with Bank of Baroda in 2019. Its headquarters were located in Mumbai, and it maintained a network of 1,874 branches. Originally founded as a private bank in 1938, it was later nationalized by the Government of India in 1969.
History
On 26 May 1938, Dena Bank was founded by the sons of Devkaran Nanjee—Choonilal Devkaran Nanjee, Pranlal Devkaran Nanjee, along with other relatives—under the name Devkaran Nanjee Banking Company. The institution adopted the name Dena Bank—derived from Devkaran Nanjee—when it became a public company in December 1939.
In July 1969, the Government of India brought Dena Bank under national ownership along with thirteen other significant banks, designating it as a Public Sector bank pursuant to the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970.
Amalgamation
The Finance Ministry of India announced on 17 September 2018 its intention to consolidate three state-owned banks — Vijaya Bank, Bank of Baroda, and Dena Bank — into one unified organization. This merged entity was expected to rank as the third largest bank in the country, with combined business volumes surpassing . The consolidation sought to improve operational effectiveness, broaden market presence and customer reach, and facilitate capital mobilization independent of government support. Earlier that year, Dena Bank had come under the Prompt Corrective Action (PCA) framework due to elevated levels of non-performing loans. At the time the merger was proposed, gross NPA ratios stood at 12.4% for Bank of Baroda, 6.9% for Vijaya Bank, and 22% for Dena Bank, which was also the smallest in terms of business size.
The merger received approval from both the Union Cabinet and the boards of the involved banks on 2 January 2019. Shareholders of Dena Bank and Vijaya Bank were allotted 110 and 402 equity shares respectively of Bank of Baroda (with a face value of 2) for every 1,000 shares they held. The integration officially commenced on 1 April 2019.
Following the merger, Bank of Baroda revealed plans in September 2019 to sell off Dena Bank’s former headquarters, known as the Dena Corporate Centre located in Mumbai’s Bandra Kurla Complex.
See also
References
- Defunct banks of India
- Banks based in Mumbai
- Banks established in 1938
- Banks disestablished in 2019
- Companies nationalised by the Government of India
- Indian companies established in 1938
- Indian companies disestablished in 2019
- Companies formerly listed on the National Stock Exchange of India
- Companies formerly listed on the Bombay Stock Exchange
- Bank of Baroda