Which of the following banks became the third largest Bank in India in April 2019?
Bank of Baroda
Analysis of the Third Largest Bank in India in 2019
The question asks to identify the bank that achieved the position of the third largest bank in India specifically in April 2019.
Key Banking Events in April 2019
April 1, 2019, was a significant date for the Indian banking sector due to a major consolidation move. Two public sector banks, Dena Bank and Vijaya Bank, were merged into another public sector bank, Bank of Baroda.
This merger was a strategic decision by the government to create larger and stronger banks capable of competing more effectively and improving financial stability.
Impact of the Merger on Bank Ranking
The amalgamation of Dena Bank and Vijaya Bank with Bank of Baroda resulted in a substantially larger entity in terms of total business, assets, branches, and customer base. This increased size significantly altered the ranking of banks in India.
Post-merger, Bank of Baroda's combined business size (deposits plus advances) made it the third largest bank in India, following State Bank of India (SBI) and HDFC Bank.
The ranking of major Indian banks by business size around April 2019 was generally:
- State Bank of India (SBI)
- HDFC Bank
- Bank of Baroda
Other large banks like Axis Bank were also significant but were ranked below Bank of Baroda based on the business size after this specific merger event.
Identifying the Correct Bank
Based on the substantial increase in size resulting from the merger of Dena Bank and Vijaya Bank into it on April 1, 2019, Bank of Baroda became the third largest bank in India.
Revision Table: Banking Mergers and Rankings
| Bank Merged Into | Banks Amalgamated | Effective Date | Impact on Ranking (Circa 2019) |
|---|---|---|---|
| Bank of Baroda | Dena Bank, Vijaya Bank | April 1, 2019 | Became 3rd largest bank in India |
Additional Information: Public Sector Bank Consolidation
The merger in April 2019 was part of a broader government initiative to consolidate public sector banks in India. This initiative aimed to:
- Improve governance and risk management practices.
- Achieve economies of scale and operational synergies.
- Strengthen financial health and lending capacity.
- Create fewer, but larger and more robust, banks.
Subsequent consolidation waves have further reduced the number of public sector banks in India, aiming for a more efficient and resilient banking system.
Important Questions from Banking Affairs
On 25 September 2020,_________ announced that they will launch a contactless debit card-based payment facility through phones called 'Safe Pay', allowing transactions up to ₹20,000 per day.
In November 2020, India and _________ jointly launched Phase 2 of the Rupay card.
In November 2020, the Union Cabinet of India approved the merger of capital-starved Lakshmi Vilas Bank (LVB) with _______________.
In August 2021, ______ opened the first floating ATM in Srinagar on a houseboat at Dal Lake.
Which two banks were merged with Bank of Baroda with effect from 1st April 2019?
