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Govt To Infuse Rs 5,042 Crore In Bank Of Baroda

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Ahead of the merger, the government has decided to infuse Rs 5,042 crore in Bank of Baroda. The bank in a filing to the exchanges on Thursday said the Ministry of Finance has informed it of the decision to infuse capital.

It said, "Ministry of Finance, Government of India vide its notification dated 27.03.2019 has conveyed its decision to infuse capital of Rs. 5,042 crore in Bank of Baroda. The Capital infusion will be by way of preferential allotment of equity shares (Special Securities / Bonds) of the Bank during FY2018-19, as Government's investment."

The merger of Dena Bank and Vijaya Bank with Bank of Baroda would be effective from 1 April.

Govt To Infuse Rs 5,042 Crore In Bank Of Baroda
 

In September 2018, the government had announced the merger of Vijaya Bank and Dena Bank with Bank of Baroda to create the third-largest bank after SBI and ICICI Bank, with a total business of over Rs 14.82 lakh crore.

As per the Scheme of Amalgamation, shareholders of Vijaya Bank will get 402 equity shares of BoB for every 1,000 shares held, while Dena Bank's shareholders will get 110 shares for every 1,000 shares of BoB.

Shares of Bank of Baroda rose close to 6 percent to an intraday high of Rs 130.25 apiece on NSE.

Meanwhile, the Supreme Court refused to stay the amalgamation of Vijaya Bank, Dena Bank with Bank of Baroda, rejecting a plea from the Bank Officers Association.

Read more about: bank of baroda
Story first published: Thursday, March 28, 2019, 14:54 [IST]
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