Government To Infuse Rs 5,042 Crore Into Bank Of Baroda

Government To Infuse Rs 5,042 Crore Into Bank Of Baroda

Bookmark

The government has decided to infuse Rs 5,042 crore into state-owned Bank of Baroda ahead of its merger with two other public sector lenders Dena Bank and Vijaya Bank.

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

"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 bank said in a regulatory filing today.

The government in September last year had announced merger of Vijaya Bank and Dena Bank with Bank of Baroda, aiming to create the third-largest lender after State Bank of India and ICICI Bank Ltd.

According to the Scheme of Amalgamation, shareholders of Vijaya Bank will get 402 equity shares of BoB for every 1,000 shares held. In the case of Dena Bank, its shareholders will get 110 shares for every 1,000 shares of BoB.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.