Monday, April 1, 2019

Bank of Baroda jumps 4% after issuing shares to Vijaya, Dena Bank shareholders

Bank of Baroda allotted 52.4 crore shares to Vijaya Bank shareholders and 24.8 crore shares to Dena Bank shareholders
Bank of Baroda jumps 4% after issuing shares to Vijaya, Dena Bank shareholders

Bank of Baroda shares gained more than 4 percent intraday on April 1 as the lender issued shares to Vijaya Bank and Dena Bank shareholders on the completion of the merger.

The stock was quoting at Rs 133.55, up Rs 4.75, or 3.69 percent on the BSE, at 1206 hours IST.
Bank of Baroda allotted 52.4 crore shares to Vijaya Bank shareholders and 24.8 crore shares to Dena Bank shareholders.

The bank said it is in the process of filing listing applications with the stock exchanges and the aforesaid equity shares will either be credited to the demat accounts or share certificates will be dispatched to the eligible shareholders of Vijay Bank and Dena Bank.

On the merger, a government official told CNBC-TV18 that amalgamation is the first step in public sector bank consolidation recommended by Narasimham Panel.

"Amalgamation has been smooth, well received by stakeholders. We expect this to serve as a model for future amalgamations," the official said.

The government-forced merger, announced in September 2018, created the third largest bank in the country after State Bank of India and HDFC Bank.

This is the second merger of state-run banks in the recent years in the banking sector after State Bank had merged five of its associate banks- State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore and State Bank of Hyderabad and also Bhartiya Mahila Bank effective April 2017.

RBI had on March 30 said branches of Dena Bank and Vijaya Bank would function as Bank of Baroda outlets from April following the amalgamation.

BoB said the consolidated bank will have over 9,500 branches, 13,400 ATMs, 85,000 employees to serve 12 crore customers.

The bank will have a business mix of Rs 15 lakh crore of the balance sheet, with deposits and advances of Rs 8.75 lakh crore and Rs 6.25 lakh crore, respectively.

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