Bank of Baroda shares surged more than 6% after it announced that the government has decided to infuse Rs 5,042 crore as capital into the PSU bank. The government has decided to infuse Rs 5,042 crore into state-owned Bank of Baroda ahead of merger of two other public sector lenders Dena Bank and Vijaya Bank with Bank of Baroda.
The merger of Dena Bank and Vijaya Bank with Bank of Baroda would be effective from 1st April. The Bank of Baroda, in a regulatory filing, said that the finance ministry through its notification conveyed its decision to infuse capital of 5,042 crore rupees in the bank.
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 SBI and ICICI Bank.