*/ The shares of Bank of Baroda, however, fell 13.7 per cent, while Vijaya Bank’s shares rose by about 10 per cent in opening trade. Bank of Baroda has support at the level of Rs.112.30 and resistance at Rs.135.40 Vijaya Bank was founded in Karnataka's Dakshina Kannada district in 1931 by A B Shetty. The stock market gave a thumbs down to Bank of Baroda and Vijaya Bank on Tuesday after the government announced the mega merger plan involving Dena Bank with two banks. Nomura estimated a return on equity of 10% for FY20 and over 12.5% by FY21 for the merged company and said the merger would be 4% book-accretive for FY20 and FY21 and 4% earnings per share-dilutive. The closing prices at the time of the deal meant that Marvel shareholders would have received $49.3998 per share in value for their stock at closing. The stock trades higher than 5, 20, 50, 100 and 200-day moving average. According to brokerages, the merger swap ratio is tilted in favour of Bank of Baroda. Both are employed and earning. As per the agreement, Vijaya Bank shareholders got 402 equity shares of BoB for every 1,000 shares they held. The government in September last year had announced merger of state-owned Vijaya Bank and Dena Bank, with larger peer Bank of Baroda, aiming to create the third largest lender after SBI and ICICI Bank. The stock market gave a thumbs down to Bank of Baroda and Vijaya Bank on Tuesday after the government announced the mega merger plan involving Dena Bank with two banks. Bank of Baroda will become the second largest lender in public sector after its merger with Dena Bank and Vijaya Bank but managing Non-Performing Assets will be critical. It had the lowest NPA ratio among the 21 PSB existing back then. Elara Securities (India) Pvt. 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. Vijaya Bank had last declared a dividend of 12.00% for the year ending March 2018. Mergers can affect two relevant stock prices: the price of the acquiring firm after the merger and the premium paid on the target firm's shares during the merger. Dena Bank shareholders received 110 BoB shares for every 1,000 shares. The three-way merger - creating the third largest PSU bank after SBI and PNB - creates a combined business of Rs. Post today's merger, Bank of Baroda will become the third biggest public sector bank after State Bank of India and ICICI. You are now subscribed to our newsletters. For Vijaya Bank investors, some 402 equity shares of Rs 2/- each of BOB are converted for every 1000 equity shares of Rs 10/ - each of Vijaya. Since then, Dena Bank, BoB and Vijaya Bank lost a total of ₹ 6,839 crore or nearly $1 billion in market valuation. After marriage, the wife's earning can not be owned by the husband. The favourable swap ratios have resulted in 8.2% and 2.2% increase in book value and adjusted book value for BoB," Motilal Oswal said. With the swap ratio now having announced, it would be useful if the incremental capital infusion happens post-merger rather than pre-merger," it said in a note on 3 January. New Delhi: After the merger of Bank of Baroda, Dena Bank and Vijaya Bank, the government on Friday, August 30, 2019, unveiled a mega-merger plan under which 10 public sector banks will be amalgamated into four entities. If we calculate, the merger of State Bank of India and its associates, a bout 4,000 employees at SBI and associate banks had opted for VRS post merger. Dena Bank’s shares prices saw a rise of almost 20 per cent early Tuesday after the Centre proposed its merger with two other public sector banks – Bank of Baroda and Vijaya Bank. BENGALURU: As the three nationalised banks, Bank of Baroda, Dena Bank and Vijaya Bank merged to form the second largest public sector bank in the country, the unified management Monday said it would benefit customers, as well as employees in a big way. Customers of the three state-run banks are set to benefit from the proposed amalgamation of Dena Bank and Vijaya Bank, two relatively small banks, with Bank of Baroda (BOB). Shares of Bank of Baroda (BoB) jumped over 6 per cent in early trade on Monday, as the bank amalgamated with state-run Vijaya Bank and Dena Bank today. According to the Reserve Bank of India (RBI), "All the branches of Vijaya Bank and Dena Bank will function as branches of Bank of Baroda from April 1, 2019. i.e. 14,82,422 crore (taking into account … However, the bank also touched intraday high of Rs 135.90 per piece. At the end of the day, Bank … 6. The three-way merger - creating the third largest PSU bank after SBI and PNB - creates a combined business of Rs. After this, Bank of Baroda has become the third-largest bank in the country. On National Stock Exchange, it touched intraday high of Rs 136.50, a 6.1 per cent jump against the previous close of Rs 128.65. “Write-down of net worth is a common occurrence to normalize accounting norms across banks. ... Swap ratio fixed for Vijaya Bank, BoB, Dena Bank merger. Take the example of two persons. Day after merger, shares of Dena Bank, Vijaya Bank tank; Bank of Baroda gains The scrip of Dena Bank plummeted 19.77 per cent to Rs 14.40 on BSE. Click here to read the Mint ePaperMint is now on Telegram. Dena shareholders received 110 shares of BoB for every 1,000 shares they held; for Vijaya shareholders, 402 for every 1,000 shares. With the announcement of Swap ration of the merger banks the investors of the Vijaya Bank and Dena Bank may experience some losses whereas the BoB shares are not affected much. Bank merger / amalgamation of Bank of Baroda, Vijaya Bank and Dena Bank occurred on 1 st April 2019 as per a decision taken by the Central government. India Business News: Shares of Dena Bank dropped 17.55 per cent to Rs 14.80 on BSE, while Vijaya Bank stock fell 6.56% to Rs 47.70. Dena Bank, named after its founder … Common occurrence to normalize accounting norms across banks of 12.00 % for the entity! If they marry one another, their shares have now converted into BoB shares for every 1000 shares of -... Post-Merger comes to 3,425 million, while net worth is a common occurrence to normalize norms. Had the lowest NPA ratio among the 21 PSB existing back then was merged with BoB 20,,! B Shetty in your Telegram and stay updated with the latest business news their own account.. State-Owned banks will the third-largest lender after State Bank of Baroda, Vijaya Bank and Bank of for! In employees ( retirement costs ) and NPLs/coverage ratio received 110 shares of -. 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vijaya bank share price after merger

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But if they marry one another, their earnings will be in their own account only. Shares of Bank of Baroda (BoB) jumped over 6 per cent in early trade on Monday, as the bank amalgamated with state-run Vijaya Bank and Dena Bank today. In the quarter ended September 2018, the government owned 68.77% in Vijaya Bank, 80.74% in Dena Bank and 63.74% in Bank of Baroda, while foreign portfolio investors held 1.29% in Dena Bank, 4.91% in Vijaya Bank and 10.35% in BoB. Vijaya Bank was merged with BOB in January 2019. BoB closed unchanged at ₹ 119.40, after rising as much as 3.31% during the day. On Wednesday, BoB said shareholders of Vijaya Bank and Dena Bank could get 402 and 110 equity shares of BoB for every 1,000 shares they held. Set price, volume and news alerts ... Swap ratio fixed for Vijaya Bank, BoB, Dena Bank merger. 14,82,422 crore (taking into account … While the swap ratio appears fair in respect to Dena Bank owing to the multiple challenges faced by the bank, we believe Vijaya Bank shareholders have nothing to gain from this merger," Motilal Oswal said in a note on 2 January. BoB announced the shareholder can get 402 and 110 shares of BoB for every 1000 shares of Vijaya Bank and Dena Bank respectively. The three merged state-owned banks will the third-largest lender after State Bank of India and HDFC Bank. 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.". In a first three-way amalgamation, Vijaya Bank and Dena Bank merged with Bank of Baroda (BoB) from April 1 to create the third-largest lender of the country. If one banks with any of these lenders then the concerned person must get ready to deal with some procedural changes. It'll just take a moment. As per the filing submitted to the exchanges today, 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 … After marriage, the wife's earning can not be owned by the husband. 110- Equity shares of Rs. ... Bank of Baroda said Vijaya Bank shareholders will receive 402 shares of BoB for 1,000 shares … According to a senior banker with one of the banks, the government has not communicated how the top management would be … As per the filing submitted to the exchanges today, 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. The price … Please turn it off in order to continue, or whitelist Mint, merger of Vijaya Bank and Dena Bank with Bank of Baroda (BoB), the proposed share swap ratios imply a discount of 30% and 11% to Dena Bank and Vijaya Bank, Vijaya Bank, Dena Bank and Bank of Baroda use the Finacle core banking solution, a planned increase in bank recapitalisation outlay. “We look at merged company financials assuming coverage of 65% by first half of FY20 and consolidation of loan book for Dena and Vijaya for FY20," it said in a note on 3 January. Take the example of two persons. According to the Reserve Bank of India (RBI), "All the branches of Vijaya Bank and Dena Bank will function as branches of Bank of Baroda from April 1, 2019. According to Nomura, the share swap ratio implies a 6-27% discount to Wednesday’s closing share prices of Dena Bank and Vijaya Bank. There was a share swap. Post the merger, the BoB is now the third largest bank in the country. BoB closed unchanged at ₹ 119.40, after rising as much as 3.31% during the day. For Vijaya Bank investors, some 402 equity shares of Rs 2/- each of BOB are converted for every 1000 equity shares of Rs 10/ - each of Vijaya. With the amalgamation of Dena Bank, Vijaya Bank and Bank of Baroda (BoB) from April 1 2019, the bank customers will have to get ready for the various modifications related to … Dena bank share price and Vijaya Bank share price gains but Bank of Baroda share price down after Bank merger news Dena Bank Share Price: देना बैंक और विजया बैंक के शेयर में भारी तेजी, बैंक ऑफ बड़ौदा का शेयर गिरा Besides, the board of the bank fixed March 11, 2019, as record date for issuing and allotting equity shares of the Bank of Baroda to the Shareholders of Vijaya Bank and Dena Bank. While 110 equity shares of BoB is converted to 1000 equity shares of Rs 10 each of Dena Bank. The stock opened with a gap up chart pattern, at a gain of 3.26 per cent from last week's close of Rs 128.80 to further to the day's high by inclining 6 per cent to Rs 136.55 on Bombay Stock Exchange. Copyright © HT Digital Streams Limited All rights reserved. Shares of the BoB surged on the BSE during the day. ... Bank of Baroda said Vijaya Bank shareholders … The name of the merged entity and the share-swap ratio will be decided soon. The Cabinet had in January, approved the merger of Vijaya Bank and Dena Bank with BoB. Log in to our website to save your bookmarks. This video is unavailable. Mergers of BOB, Vijaya & Dena Banks- Issues & Challenges :- There has been a sigh of relief for the Staff members of Dena Bank since it's gross NPA as on 31.03.18 is Rs 16,314 Crores & Loss declared for the full year is Rs 1,923 Crores. Vijaya Bank, among the only two lenders to have reported a profit in 2017-18, has a strong credit culture. NEW DELHI: Shares of Bank of Baroda (BoB) jumped over 3 per cent in early trade on Monday- the day when Vijaya Bank and Dena Bank was merged with it. On Thursday, Dena Bank shares fell 20% to ₹ 14.40 a share, while Vijaya Bank ended at ₹ 47.35, down 7.25%. New Delhi: The Board of Bank of Baroda (BoB) on Wednesday approved fair equity share exchange ratio for amalgamation of Dena Bank and Vijaya Bank with the former. For every 1,000 equity shares of Vijaya Bank and Dena Bank, respectively, investors will get 402 and 110 equity shares of Bank of Baroda, according to a BSE notification. 2/- each of Bank of Baroda for every -1000- equity shares of Rs.10/ - each of erstwhile Dena Bank. Kotak Institutional Equities said there were a few challenges in estimating the book value of the combined entity as there is more time left for the deal to complete. Research on the topic suggests that the acquiring firm, in the average merger, typically doesn't enjoy better returns after the merger. The new entity, formed after the merger of Bank of Baroda, Vijaya Bank and Dena Bank, will have a turnover of Rs 14.82 lakh crore and will be the third-largest bank after SBI and ICICI Bank. 2/- each of Bank of Baroda for every -1000- equity shares of Rs.10/ - each of erstwhile Vijaya Bank. The merger is effective from 1 April 2019. Set price, volume and news alerts. "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. The brokerage said while typical merger issues, such as cultural and social, network overlaps, relocations and business and team integrations are likely to remain an overhang on near-term performance, back-end technology integration would be relatively smooth, as Vijaya Bank, Dena Bank and Bank of Baroda use the Finacle core banking solution. Share prices of Bank of Baroda declined by more than 17% on Tuesday, a day after the government announced its merger with state-run Dena Bank and Vijaya Bank. You seem to have an Ad Blocker on. But if they marry one another, their earnings will be in their own account only. After the announcement of the merger, Dena Bank stock reacted positively while other two banks’ stocks reacted negatively to the merger. Vijaya Bank: The stock of Vijaya bank after surging in early trade by as much as 10% pared its opening gains and at 1:56 pm was trading lower by 6.52% or Rs. Post the earlier three-way merger of Bank of Baroda, Vijaya Bank and Dena Bank, the government has moved quickly with more amalgamations with this decision to … Experts largely expect the swap ratio for the banks to be based on prevailing valuations and, thus, they may offer limited arbitrage opportunities. Ravindra Sonavane contributed to the story. The announcement is in line with the government’s aim to consolidate the banking sector as part of the 'alternative mechanism'. 3.90 at Rs.55.90 on the BSE. Till its merger with Bank of Baroda and Dena Bank, Vijaya Bank was the best performing PSB in the country in terms of asset quality. It has rising investors' participation at 18 lakh shares changing hands on BSE and 26 lakh shares traded on NSE, both above the 5, 10 and 30-day average volume of the stock. Meanwhile, share price of Vijaya Bank opened by touching an intraday high of Rs 65.9 per piece rising by over 10.36%. Dena Bank has support at the level of Rs. Thereafter, considering the actual swap ratio and 2 January’s closing price for BoB, the combined entity is at a valuation of 1.5 times, which seems to be richly valued," it said in a report on 2 January. Under the terms of the merger, Dena Bank and Vijaya Bank shareholders received 110 and 402 equity shares of the Bank of Baroda, respectively, of face value Rs.2 for every 1,000 shares they held. In case you can’t find any email from our side, please check the spam folder. The merger will be effective from April 1. Bank of Baroda shares dip 16%, Dena Bank up by 20% after merger announcement Bank of Baroda’s market valuation fell by Rs 5,726.62 crore to Rs 30,013.38 crore on BSE. Your session has expired, please login again. While 110 equity shares of BoB is converted to 1000 equity shares of Rs 10 … Vijaya Bank, Dena Bank merger with BoB to be effective from April 1; here's the share exchange plan The Bank of Baroda board will allot equity shares to Vijaya Bank and Dena Bank on March 11. The announcement is in line with the government’s aim to consolidate the banking sector as part of the 'alternative mechanism'. Since the Bank of Baroda share had a face value of ₹2 and the other two, ₹10 … Get Vijaya Bank[Merged] live share price, historical charts, volume, market capitalisation, market performance, reports and other company details. Share prices of Bank of Baroda declined by more than 17% on Tuesday, a day after the government announced its merger with state-run Dena Bank and … The existing employees will now be absorbed into the newly merged entity that will be formed (it is expected to take 4 to 6 months to complete the merger process). the share prices of Bank of Baroda, Vijaya Bank and Dena Bank of last 6 months pre and post-merger of the 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. After the merger of PSU (public sector units) banks- Dena Bank, Bank of Baroda and Vijaya Bank, your account will not be closed, and you will not lose money. “The total number of shares post-merger comes to 3,425 million, while net worth of the combined entity stands at ₹ 55,600 crore. The finance minister said during the meet that the employees of all the three banks will not face any adverse service conditions different from their present state and the interest of all the employees will be protected. 77.2 crore. On the other hand, shares of Bank of Ba Customers of the three state-run banks are set to benefit from the proposed amalgamation of Dena Bank and Vijaya Bank, two relatively small banks, with Bank of Baroda (BOB). After this first three-way amalgamation announced 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 combined bank will have a geographical reach of more than 9,500 branches, more than 13,400 ATMs with 85,000 employees serving 12 crore customers. After the mega PSU bank merger between Bank of Baroda, Vijaya Bank and Dena Bank received Union Cabinet approval yesterday, shares of BoB rallied while the … At 2 p.m., stocks of the bank on the BSE were at Rs 134.55 per share, higher by Rs 5.75 or 4.46 per cent from the previous close. This brings in the question, whether you should buy BoB share price post merger. “Based on the price on the day of the merger announcement, the proposed share swap ratios imply a discount of 30% and 11% to Dena Bank and Vijaya Bank, respectively. India Business News: Shares of Dena Bank dropped 17.55 per cent to Rs 14.80 on BSE, while Vijaya Bank stock fell 6.56% to Rs 47.70. Paired Sample T test is used to analyse the data in this study, and the result obtain from the study shows that there is significant difference is the share price of the bank before and after the merger… However, prior to the merger’s completion the share price of Marvel Entertainment, Inc was only $48.37 – a full point below the merger value. New Delhi: The merger of Vijaya Bank and Dena Bank with Bank of Baroda is effective from April 1, 2019. This marks the first-ever three-way merger in India's banking sector. 14 and resistance at Rs.20.4. In these cases Vijaya Bank and Dena Bank are swapping equity shares with BoB, but this comes as a loss for the two smaller banks' share price, as value will decline. According to experts, the merger will help boost customer services by way of increased efficiencies. It added that a planned increase in bank recapitalisation outlay by ₹ 41,000 crore would likely ensure healthy capitalization levels for the combined entity, and help it better deal with merger-related challenges. Join Mint channel in your Telegram and stay updated with the latest business news. Bank of Baroda on Wednesday said the merger of Dena Bank and Vijaya Bank with itself would be effective from April 1 as per the scheme of amalgamation approved by the government. Dena shareholders received 110 shares of Bank of Baroda for every 1,000 shares they held; Vijaya shareholders received 402 shares for every 1,000 shares. On the other hand, shares of Bank of Ba In case of Dena Bank, its shareholders will get 110 shares for every 1,000 shares of BoB. The government will own 65.74% in the merged entity. New Delhi: The merger of Vijaya Bank and Dena Bank with Bank of Baroda is effective from April 1, 2019. It said the government could look to infuse capital to meet the regulatory requirements of Dena Bank, which would be a significant negative for the shareholders of BoB as incremental capital is at a significant discount to reported book value. Notably, Vijaya Bank shareholders will get 402 equity shares of BoB for every 1,000 shares … Bank of Baroda will become the second largest lender in public sector after its merger with Dena Bank and Vijaya Bank but managing Non-Performing Assets will be critical. Since the BoB share has … Watch Queue Queue 24.8 crore to Dena Bank shareholders at an approved Share Exchange Ratio, totaling to Rs. Dena Bank and Bank of Baroda Stock Price Analysis. Shares of Bank … Mumbai: A day after the share swap ratio for the merger of Vijaya Bank and Dena Bank with Bank of Baroda (BoB) was announced, brokerages attempted to weigh the discounts, value the merged entity and estimate their capitalization levels. The purging of bad loans over the past few years has considerably improved transparency levels, and thus, will pre-empt any post-merger shocks for BoB. History of Vijaya Bank : Dena Bank, Vijaya Bank and Bank of Baroda (BoB) have lost nearly $1 billion in market valuation since their bank merger was announced in September. Both are employed and earning. Our calculations show adjusted book value for the merged entity stands at ₹ 80 per share. For existing investors in Dena and Vijaya Bank, their shares have now converted into BoB shares. The most common areas of write-down would be in employees (retirement costs) and NPLs/coverage ratio. At present, Dena Bank trades at 0.4 times, Vijaya Bank at 0.7 times and BoB at 0.8 times FY2018 books. On Thursday, Dena Bank shares fell 20% to ₹ 14.40 a share, while Vijaya Bank ended at ₹ 47.35, down 7.25%. Ltd said the share swap ratio reflects adjustments for net NPA, adding that banks with stronger balance sheets are likely to fetch better value for their businesses (in this case, Vijaya Bank), while weaker franchises, which are struggling with stressed loans and provisioning burden, are likely to be bailed out at a discount. 6. Morgan Stanley said the swap ratio for the merger implies a discount of about 27 per cent to Dena Bank's shares and a discount of about 6 per cent to Vijaya Bank's shares against their last closing. Who will be the of CEO Merged Bank. Vijaya Bank, among the only two lenders to have reported a profit in 2017-18, has a strong credit culture. With the proposed plan to merge 10 PSU banks to form four larger banks, the overall count of public sector banks (PSBs) in India will fall to 12 from 27 in 2017. [India], Apr 1 (ANI): Bank of Baroda on Monday became Indias second largest public sector bank behind State Bank of India (SBI) following a three-way merger with Dena Bank and Vijaya Bank. Watch Queue Queue. Also Read: Sensex hits all-time all high of 39,028, Nifty rises to 11,715: Five factors that drove the rally, Also Read: Share Market Live: Sensex crosses 39,000 mark for first time; Nifty above 11,700; Tata Motors, Vedanta, Tata Steel top gainers, Sensex hits all-time all high of 39,028, Nifty rises to 11,715: Five factors that drove the rally, Share Market Live: Sensex crosses 39,000 mark for first time; Nifty above 11,700; Tata Motors, Vedanta, Tata Steel top gainers, RBI policy, politics, macro data to drive Indian market next week, Tata Motors shares jump over 7% as JLR expects improved earnings in March quarter. At the current share price of Rs 46.05 this results in a dividend yield of 2.61%. Dena Bank's lower capital buffers are offset by Vijaya Bank's higher capital buffers, it said, adding that the merged bank may need additional tier 1 capital depending on internal accruals for FY19. On 17 September, the government had announced its decision to merge the three banks. Shares of erstwhile Vijaya Bank and erstwhile Dena Bank will be converted as under: 402- Equity shares of Rs. Bank of Baroda, Dena Bank and Vijaya Bank have about 85,600 employees between them. “Such a large-scale bank merger will present its own set of challenges in the near term, but the recovery in the non-performing loan (NPL) cycle, credit growth and the prospects of adequate capital infusion from the government will aid smoother integration and help in returning to normal operations. The government has decided to merger three banks – Bank of Baroda, Dena Bank and Vijaya Bank — to reduce the amount of capital it needs to put into these banks and help clean their balance sheets. “The swap ratio, not yet announced, is hard to predict, as it’s more of an administrative call. Bank of Baroda on Monday became India's second largest public sector bank behind State Bank of India (SBI) following a three-way merger with Dena Bank and Vijaya Bank. Bank of Baroda, Vijaya Bank, Dena Bank merger: All you ... ... */ /*-->*/ The shares of Bank of Baroda, however, fell 13.7 per cent, while Vijaya Bank’s shares rose by about 10 per cent in opening trade. Bank of Baroda has support at the level of Rs.112.30 and resistance at Rs.135.40 Vijaya Bank was founded in Karnataka's Dakshina Kannada district in 1931 by A B Shetty. The stock market gave a thumbs down to Bank of Baroda and Vijaya Bank on Tuesday after the government announced the mega merger plan involving Dena Bank with two banks. Nomura estimated a return on equity of 10% for FY20 and over 12.5% by FY21 for the merged company and said the merger would be 4% book-accretive for FY20 and FY21 and 4% earnings per share-dilutive. The closing prices at the time of the deal meant that Marvel shareholders would have received $49.3998 per share in value for their stock at closing. The stock trades higher than 5, 20, 50, 100 and 200-day moving average. According to brokerages, the merger swap ratio is tilted in favour of Bank of Baroda. Both are employed and earning. As per the agreement, Vijaya Bank shareholders got 402 equity shares of BoB for every 1,000 shares they held. The government in September last year had announced merger of state-owned Vijaya Bank and Dena Bank, with larger peer Bank of Baroda, aiming to create the third largest lender after SBI and ICICI Bank. The stock market gave a thumbs down to Bank of Baroda and Vijaya Bank on Tuesday after the government announced the mega merger plan involving Dena Bank with two banks. Bank of Baroda will become the second largest lender in public sector after its merger with Dena Bank and Vijaya Bank but managing Non-Performing Assets will be critical. It had the lowest NPA ratio among the 21 PSB existing back then. Elara Securities (India) Pvt. 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. Vijaya Bank had last declared a dividend of 12.00% for the year ending March 2018. Mergers can affect two relevant stock prices: the price of the acquiring firm after the merger and the premium paid on the target firm's shares during the merger. Dena Bank shareholders received 110 BoB shares for every 1,000 shares. The three-way merger - creating the third largest PSU bank after SBI and PNB - creates a combined business of Rs. Post today's merger, Bank of Baroda will become the third biggest public sector bank after State Bank of India and ICICI. You are now subscribed to our newsletters. For Vijaya Bank investors, some 402 equity shares of Rs 2/- each of BOB are converted for every 1000 equity shares of Rs 10/ - each of Vijaya. Since then, Dena Bank, BoB and Vijaya Bank lost a total of ₹ 6,839 crore or nearly $1 billion in market valuation. After marriage, the wife's earning can not be owned by the husband. The favourable swap ratios have resulted in 8.2% and 2.2% increase in book value and adjusted book value for BoB," Motilal Oswal said. With the swap ratio now having announced, it would be useful if the incremental capital infusion happens post-merger rather than pre-merger," it said in a note on 3 January. New Delhi: After the merger of Bank of Baroda, Dena Bank and Vijaya Bank, the government on Friday, August 30, 2019, unveiled a mega-merger plan under which 10 public sector banks will be amalgamated into four entities. If we calculate, the merger of State Bank of India and its associates, a bout 4,000 employees at SBI and associate banks had opted for VRS post merger. Dena Bank’s shares prices saw a rise of almost 20 per cent early Tuesday after the Centre proposed its merger with two other public sector banks – Bank of Baroda and Vijaya Bank. BENGALURU: As the three nationalised banks, Bank of Baroda, Dena Bank and Vijaya Bank merged to form the second largest public sector bank in the country, the unified management Monday said it would benefit customers, as well as employees in a big way. Customers of the three state-run banks are set to benefit from the proposed amalgamation of Dena Bank and Vijaya Bank, two relatively small banks, with Bank of Baroda (BOB). Shares of Bank of Baroda (BoB) jumped over 6 per cent in early trade on Monday, as the bank amalgamated with state-run Vijaya Bank and Dena Bank today. According to the Reserve Bank of India (RBI), "All the branches of Vijaya Bank and Dena Bank will function as branches of Bank of Baroda from April 1, 2019. i.e. 14,82,422 crore (taking into account … However, the bank also touched intraday high of Rs 135.90 per piece. At the end of the day, Bank … 6. The three-way merger - creating the third largest PSU bank after SBI and PNB - creates a combined business of Rs. After this, Bank of Baroda has become the third-largest bank in the country. On National Stock Exchange, it touched intraday high of Rs 136.50, a 6.1 per cent jump against the previous close of Rs 128.65. “Write-down of net worth is a common occurrence to normalize accounting norms across banks. ... Swap ratio fixed for Vijaya Bank, BoB, Dena Bank merger. Take the example of two persons. Day after merger, shares of Dena Bank, Vijaya Bank tank; Bank of Baroda gains The scrip of Dena Bank plummeted 19.77 per cent to Rs 14.40 on BSE. Click here to read the Mint ePaperMint is now on Telegram. Dena shareholders received 110 shares of BoB for every 1,000 shares they held; for Vijaya shareholders, 402 for every 1,000 shares. With the announcement of Swap ration of the merger banks the investors of the Vijaya Bank and Dena Bank may experience some losses whereas the BoB shares are not affected much. Bank merger / amalgamation of Bank of Baroda, Vijaya Bank and Dena Bank occurred on 1 st April 2019 as per a decision taken by the Central government. 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