Vijaya Bank
| Company type | Government-owned bank |
|---|---|
| Industry | Banking, Financial services |
| Founded | October 23, 1931 in Mangalore, Mysore State (present-day Karnataka), India |
| Founder | A. B. Shetty |
| Defunct | April 1, 2019 |
| Fate | Merged with Bank of Baroda |
| Headquarters | Bangalore , India |
Area served | India |
Key people | Mulki Sunder Ram Shetty (former chairman) |
| Products | Banking products and services including retail banking, deposits, advances, ATMs |
Number of employees | 9,059 (1980) |
Vijaya Bank was a government-owned financial institution that merged with Bank of Baroda on 1 April 2019, with its headquarters located in Bangalore, Karnataka, India. As a nationalised entity, it offered a wide array of banking products and services through various channels. By March 2017, Vijaya Bank managed 2,031 branches and more than 4,000 customer service points, including 2,001 ATMs spread across the country.
History
The inception of Vijaya Bank dates back to 23 October 1931 when a collective of farmers, led by A. B. Shetty, established it in Mangalore, within the Dakshina Kannada district of the then Princely State of Mysore (present-day Karnataka). Founded on the auspicious day of Vijayadashami, the bank was aptly named "Vijaya Bank".
During the challenging economic period of the Great Depression, Shetty rallied 14 respected members of the Bunt community to form a bank that would provide affordable credit to farmers, shielding them from predatory moneylenders. The initial authorised capital stood at 5 lakh, with an issued capital of 2 lakh and a paid-up capital amounting to 8,670.
Expansion and Nationalisation
The institution experienced consistent growth and attained scheduled bank status in 1958. Under the leadership of chairman Mulki Sunder Ram Shetty, Vijaya Bank expanded considerably by merging with nine smaller banks between 1963 and 1968. Its logo was officially registered in 1965, and on 11 November 1969, the bank shifted its headquarters to Bangalore. Following its nationalisation on 15 April 1980, Vijaya Bank operated 571 branches, managed business worth 605.95 crore, and employed a workforce of 9,059.
The current headquarters building situated on Mahatma Gandhi Road in Bangalore was inaugurated on 26 October 1984.
Merger
On 17 September 2018, the Ministry of Finance proposed consolidating Vijaya Bank with Bank of Baroda and Dena Bank to strengthen the banking sector. This merger aimed to create India’s third-largest bank with combined business surpassing . The initiative sought to address non-performing assets (NPAs), which were recorded at 12.4% for Bank of Baroda, 6.9% for Vijaya Bank, and 22% for Dena Bank.
The Union Cabinet along with the respective boards sanctioned the merger on 2 January 2019. Shareholders of Dena Bank and Vijaya Bank were allotted 110 and 402 shares respectively in Bank of Baroda (with a face value of ₹2) for every 1,000 shares they held. The merger became effective from 1 April 2019. Subsequent to this consolidation, Vijaya Bank established a museum commemorating its legacy.
Business Operations
As reported on 31 March 2017, Vijaya Bank’s total business volume exceeded ₹2,29,000 crore, comprising deposits worth ₹1,33,012 crore and advances totaling ₹96,821 crore. Primarily focused on retail banking, a significant portion of its revenue growth stemmed from retail segments, with retail advances accounting for approximately 30% of its gross credit portfolio.
At that time, the bank maintained a network of 2,031 branches along with 2,001 ATMs. Additionally, customers had access to over 221,000 ATMs nationwide via the National Financial Switch system.
Financial Inclusion Efforts
Vijaya Bank actively engaged in promoting financial inclusion by extending banking services to rural communities. It facilitated the opening of Basic Savings Bank Accounts under the Pradhan Mantri Jan Dhan Yojana scheme and issued Rupay debit cards to account holders. The bank also supported social security initiatives including Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, and Atal Pension Yojana while implementing the Government’s revised Direct Benefit Transfer (DBT) program.
External links
- Indian banks no longer operating
- Banks headquartered in Karnataka
- Corporations located in Bengaluru
- Banks founded in 1931
- Banks that ceased operations in 2019
- Enterprises nationalised by the Indian Government
- Banks originated in Mangalore
- Indian firms dissolved in 2019
- Indian firms founded in 1931
- Companies formerly traded on the National Stock Exchange of India
- Companies formerly traded on the Bombay Stock Exchange
- Bank of Baroda
- Indian companies disestablished in 2019