Vijaya Bank
Former Indian public-sector bank that became part of Bank of Baroda on 1 April 2019.
Last updated August 31, 2026
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Overview
Vijaya Bank was an Indian public-sector commercial bank whose history began in coastal Karnataka during the economic disruption surrounding the Great Depression. It was established on 23 October 1931 in Mangalore, then part of the Princely State of Mysore, by A. B. Shetty together with 14 other members of the Bunt community. The bank was founded with a development-oriented purpose: to provide farmers with access to credit at more affordable interest rates and reduce their dependence on informal moneylenders. Its name reflected the fact that it was established on Vijayadashami, a major Hindu festival. The institution began on a modest scale, with authorised capital of ₹5 lakh, issued capital of ₹2 lakh, and paid-up capital of ₹8,670. It expanded over subsequent decades and became a scheduled bank in 1958. During the 1960s, under the chairmanship of Mulki Sunder Ram Shetty, Vijaya Bank pursued growth through the amalgamation of nine smaller banks between 1963 and 1968. These combinations helped transform it from a regional institution into a bank with an increasingly broad national presence. The bank also registered its own logo in 1965. Vijaya Bank moved its head office from Mangalore to Bangalore on 11 November 1969. It was nationalised by the Government of India on 15 April 1980, joining the group of state-owned Indian banking institutions. At nationalisation, it had 571 branches, total business of approximately ₹605.95 crore, and a workforce of 9,059 employees. Its later head-office building on Mahatma Gandhi Road in Bangalore was inaugurated on 26 October 1984. The bank offered retail banking, corporate banking, international banking, deposit products, credit facilities, payment services, and other financial products through branch, ATM, and electronic delivery channels. It had a particularly significant retail orientation, with retail advances accounting for about 30% of gross credit in the period for which published operating data are available. As of 31 March 2017, its network comprised 2,031 branches and 2,001 ATMs, while customers could also access more than 2.21 lakh ATMs connected through India's National Financial Switch. At that date, total business exceeded ₹2.29 lakh crore, comprising deposits of ₹1,33,012 crore and advances of ₹96,821 crore. Financial inclusion was an important part of Vijaya Bank's public-sector role. It participated in the Pradhan Mantri Jan Dhan Yojana by opening Basic Savings Bank Deposit Accounts and issuing RuPay debit cards. It also supported government-backed social-security programmes including the Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, and Atal Pension Yojana. The bank implemented the modified Direct Benefit Transfer programme and used its branch network to extend formal banking access in rural and underserved communities. Vijaya Bank ceased to exist as an independent bank on 1 April 2019. The Government of India proposed in September 2018 that Vijaya Bank, Dena Bank, and Bank of Baroda be amalgamated to consolidate the public-sector banking system and address balance-sheet and non-performing-asset pressures. The Union Cabinet and the three banks' boards approved the transaction in January 2019. Under the share-exchange terms, Vijaya Bank shareholders received 402 Bank of Baroda equity shares for every 1,000 Vijaya Bank shares held. The resulting Bank of Baroda became one of India's largest banks. Vijaya Bank's institutional history has since been preserved in a museum created by the merged bank.
History
Vijaya Bank was founded on 23 October 1931 in Mangalore, in the Dakshina Kannada area of the then Princely State of Mysore. Its creation was led by A. B. Shetty and 14 other Bunt community leaders. The founders were responding to the economic hardship and restricted access to formal credit experienced by farmers during the Depression-era economy. Their objective was to establish a bank that could lend at lower interest rates and help cultivators avoid dependence on moneylenders. Because the institution was established on Vijayadashami, it was named Vijaya Bank. The original capital structure was small: authorised capital was ₹5 lakh, issued capital was ₹2 lakh, and paid-up capital was ₹8,670. The bank grew steadily and obtained scheduled-bank status in 1958. Its development accelerated during the 1960s, when it combined with nine smaller banks between 1963 and 1968. These transactions, carried out during the chairmanship of Mulki Sunder Ram Shetty, expanded its customer base and operating footprint and helped it evolve from a regional lender into an all-India bank. The institution registered its own logo in 1965. A major geographic change occurred on 11 November 1969, when Vijaya Bank transferred its head office from Mangalore to Bangalore. The move placed the bank in Karnataka's principal administrative and commercial centre. It was subsequently nationalised on 15 April 1980 as part of the Government of India's expansion of state ownership across the banking sector. At the time of nationalisation, Vijaya Bank operated 571 branches, had total business of ₹605.95 crore, and employed 9,059 people. Its later head-office premises on Mahatma Gandhi Road, Bangalore, were inaugurated on 26 October 1984. As a nationalised bank, Vijaya Bank developed a broad commercial model covering deposits, lending, retail banking, corporate banking, international banking, payment services, and delivery through branches and ATMs. It retained a strong retail orientation. Published data for 31 March 2017 recorded 2,031 branches and 2,001 ATMs, as well as access to more than 2.21 lakh ATMs through the National Financial Switch. Total business was above ₹2.29 lakh crore, including deposits of ₹1,33,012 crore and advances of ₹96,821 crore. Retail advances represented roughly 30% of gross credit in that period. The bank also participated in India's financial-inclusion agenda. It opened Basic Savings Bank Deposit Accounts under the Pradhan Mantri Jan Dhan Yojana, issued RuPay debit cards, and supported the Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, and Atal Pension Yojana. It implemented the modified Direct Benefit Transfer programme, using its physical network and banking infrastructure to distribute public benefits and extend formal financial services to rural customers. The final phase of Vijaya Bank's history was shaped by public-sector consolidation. On 17 September 2018, the Government of India's Finance Ministry proposed merging Vijaya Bank and Dena Bank with Bank of Baroda. The plan was intended to consolidate the banking system and improve the capacity of the combined institution to manage non-performing assets. The proposal was approved by the Union Cabinet and the banks' boards on 2 January 2019. Under the approved exchange terms, shareholders of Vijaya Bank received 402 Bank of Baroda equity shares for every 1,000 Vijaya Bank shares held. The merger took effect on 1 April 2019, after which Vijaya Bank no longer operated as an independent bank. Bank of Baroda later established a museum dedicated to Vijaya Bank's history.
- 2019
Merger into Bank of Baroda takes effect
[1]The merger becomes effective on 1 April, ending Vijaya Bank's independent existence.
- 2018
Three-bank merger proposed
[1]The Finance Ministry proposes combining Vijaya Bank, Dena Bank, and Bank of Baroda.
- 2017
Operates a nationwide branch and ATM network
[1]As of 31 March, the bank reports 2,031 branches and 2,001 ATMs, with total business exceeding ₹2.29 lakh crore.
- 1984
New Bangalore head office inaugurated
[1]The bank's head-office building on Mahatma Gandhi Road, Bangalore, is inaugurated on 26 October.
- 1980
Nationalised by the Government of India
[1]Vijaya Bank becomes a nationalised bank on 15 April, operating under India's public-sector banking framework.
- 1969
Head office moves to Bangalore
[1]The bank shifts its head office from Mangalore to Bangalore on 11 November.
- 1965
Registers its own logo
[1]Vijaya Bank registers a corporate logo during its period of expansion.
- 1963
Begins a period of bank amalgamations
[1]The bank begins combining with smaller banks, completing nine such mergers during 1963–1968.
- 1958
Becomes a scheduled bank
[1]Vijaya Bank receives scheduled-bank status as its operations expand.
- 1931
Vijaya Bank is established in Mangalore
[1]A. B. Shetty and 14 other Bunt community leaders establish the bank on 23 October in response to farmers' need for affordable formal credit.
Products and positioning
A nationalised Indian public-sector bank with roots in farmer-oriented regional lending, later positioned as a broad retail, corporate, and financial-inclusion institution.
Banking
Retail banking
Vijaya Bank's retail business covered deposit accounts, personal banking, consumer-facing payment services, and retail credit. The bank described itself as substantially retail-oriented, and retail advances represented about 30% of gross credit in the published March 2017 operating data.
Banking
Corporate banking
The corporate banking business provided financial services and credit facilities to businesses and institutional customers. It formed part of the bank's broader commercial-banking offering alongside retail and international operations.
Banking
International banking
International banking was one of the service areas listed in Vijaya Bank's operating model. The offering complemented its domestic branch network and allowed the former bank to present itself as a full-service public-sector commercial bank.
Financial inclusion
Financial inclusion accounts and schemes
The bank opened Basic Savings Bank Deposit Accounts under the Pradhan Mantri Jan Dhan Yojana and provided RuPay debit cards. It also distributed or supported access to government-backed insurance, pension, and Direct Benefit Transfer programmes.
Marketing campaigns
- Pradhan Mantri Jan Dhan Yojana participation
India
Vijaya Bank supported the national financial-inclusion programme by opening Basic Savings Bank Deposit Accounts and issuing RuPay debit cards to account holders.
Outcome. The initiative expanded access to formal banking and government-linked payment services through the bank's branch network.
- Government social-security scheme participation
India
The bank participated in the Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, and Atal Pension Yojana.
Outcome. These programmes extended access to publicly sponsored insurance and pension products through Vijaya Bank's banking channels.
- Modified Direct Benefit Transfer implementation
India
Vijaya Bank implemented the modified Direct Benefit Transfer programme of the Government of India.
Outcome. The bank served as a channel for transferring eligible government benefits into customers' accounts.
Brand decisions
2019
Complete merger into Bank of BarodaM&ABackground
The approved amalgamation required the integration of Vijaya Bank and Dena Bank into Bank of Baroda.
Action taken
The transaction took effect on 1 April 2019. Vijaya Bank shareholders received 402 Bank of Baroda equity shares for every 1,000 Vijaya Bank shares held.
Aftermath
The combined institution became one of India's largest banks, while Vijaya Bank's historical identity was subsequently commemorated through a museum.
2018
Accept proposed amalgamation with Bank of Baroda and Dena BankM&ABackground
The Government of India proposed a three-bank combination as part of public-sector banking consolidation. The proposal was associated with the objective of creating a stronger institution and addressing non-performing assets.
Action taken
The boards of Vijaya Bank, Dena Bank, and Bank of Baroda considered and approved the amalgamation in conjunction with Union Cabinet approval on 2 January 2019.
Aftermath
The merger became effective on 1 April 2019, and Vijaya Bank ceased operating as an independent bank.
Recent events
- 2019
Merger with Bank of Baroda approved[1]
M&A
The Union Cabinet and the boards of Vijaya Bank, Dena Bank, and Bank of Baroda approved the proposed amalgamation on 2 January 2019.
- 2019
Vijaya Bank merger becomes effective[1]
M&A · Other
Vijaya Bank and Dena Bank were merged into Bank of Baroda on 1 April 2019, ending Vijaya Bank's independent corporate existence.
- 2018
Government proposes amalgamation of Vijaya Bank, Dena Bank and Bank of Baroda[1]
M&A
India's Finance Ministry proposed combining the three state-run banks as part of a public-sector banking consolidation programme. The stated rationale included creating a stronger institution and addressing non-performing assets.
Sources1 sources
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