INSUBCONTINENT EXCLUSIVE:
weaker earnings amid merger with Vijaya Bank and Dena Bank.
We believe the proposed merger entails costs and other challenges, and will take
Shares of the public sector lender fell 5.6% to end at Rs 116.40 owing to weakness in the financials space
Sentiment in the financials was hit by weak results from Yes Bank and credit rating downgrade in companies belonging to the Anil Ambani
Group companies to which many lenders have exposure.
The merger with Dena Bank and Vijaya Bank will take at least two-three years to
consummate, if not more, the domestic brokerage said.
Continuity in management at Bank of Baroda is critical for smooth consummation of the
merger, it added.
The government had announced the merger of Vijaya Bank and Dena Bank with Bank of Baroda, aiming to create the third
