By Consultants Review Team
Shares of Bank of Baroda (BoB) jumped over 6 per cent in early trade on April 1st, the day when the bank amalgamated with state-run Vijaya Bank and Dena Bank.
Marked as the first-ever three-way merger in India’s banking sector, its first announcement came in September 2018. The consolidated bank created will be the third-largest lender in the country after State Bank of India and HDFC Bank.
"The consolidated bank will have over 9,500 branches, 13,400 ATMs, 85,000 employees to serve 12 crore customers and furthermore 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," BoB said.
As per the filing submitted to the exchanges recently, pursuant to the amalgamation of Vijaya Bank and Dena Bank with Bank of Baroda scheme, BoB has issued and allotted equity shares of Rs 52.4 crore to Vijaya Bank shareholders and Rs. 24.8 crore to Dena Bank shareholders at an approved Share Exchange Ratio, totaling to Rs. 77.2 crore.
The filing added, "The Bank 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.”
"Further, in terms of the aforesaid Scheme, Bank accounts of eligible shareholders of Vijaya Bank and Dena Bank as registered with the Depositories / Bank will be either credited or fractional cash warrants will be issued with amount arising out of fractional Entitlements," the statement read.
The bank also notified last week government capital infusion of Rs 5,042 crore in BoB for enhancing its capital base to meet the additional expense and make the merger a smooth affair.