Public sector lender Bank of Baroda (BoB) has decided to sell the head office of erstwhile Dena Bank in Bandra Kurla Complex for at least ₹530 crore, according to a document seeking bids. The e-auction will be conducted on 18 October.
This follows the merger of Bank of Baroda with Dena Bank and Vijaya Bank in April.
“Bank of Baroda invites offer for sale-cum-auction of its immovable property at Bandra Kurla Complex namely “Dena Corporate Centre" by holding e-auction," it said.
While the land area of the property is 2878.36 square meters, the built-up area is 9953.73 square meters and the reserve price for the property is ₹530 crore, with the option of incremental bids of ₹50 lakh each.
“To the best of knowledge and information of bank, there is no encumbrance on this property. However, the intending bidder should make their own independent inquiries regarding the encumbrances, title of property put on auction and claims/right/dues effecting the property, prior to submitting their bid," the document said.
In September last year, the government decided to merge three banks—Bank of Baroda, Dena Bank and Vijaya Bank, to reduce the amount of capital it needs to pump into these lenders and help clean their balance sheets. The merger was effective 1 April. While Dena Bank was placed under the prompt corrective action (PCA) framework by the Reserve Bank of India, with restrictions on lending, Vijaya Bank was among the only two lenders to have reported a profit in 2017-18.
Meanwhile, news agency PTI reported on 19 May that BoB is considering the option of rationalising 800-900 branches across the country to improve operational efficiency following its merger. After a comprehensive review, BoB has identified 800-900 branches which needs to be rationalised, the report said, adding that the lender could opt for re-location and in some cases closure.