INSUBCONTINENT EXCLUSIVE:
Bank merger: Earlier, Bank of Baroda shares fell as much as 14%.Bank of Baroda shares fell over 11 per cent after earlier losing as much as
11 per cent in Tuesday's trade after the government announced its merger with smaller peers Dena Bank and Vijaya Bank, both of which
At 11:00 am, Bank of Baroda shares traded at Rs 120.10, down Rs 15.00 or 11.10 per cent on the Bombay Stock Exchange (BSE)
Vijaya Bank shares traded at Rs 60.55, up Rs 0.75 and Dena Bank shares traded at Rs 19.10, with a gain of Rs 3.15 on the BSE.The government
plans to merge Bank of Baroda, Dena Bank and Vijaya Bank as part of efforts to tackle a pile of bad loans plaguing the banking sector
The three banks will create the third largest bank in the country.Experts were, however, not very hopeful about the prospects for Bank of
Baroda."The plan lacks solidity unless there is a serious quantification of capital impairment
With BOB forming the biggest chunk of the business (two-third), this scheme appears to create some headwinds for the bank," said Dhananjay
Sinha, Head of Research, Economist and Strategist, Emkay Global Financial Services.Bank of Baroda shares saw their steepest fall in over
three years, according to a report by news agency Reuters
Deutsche Bank analysts downgraded the stock of Bank of Baroda to "hold" from "buy", cutting its price target to Rs 145 from Rs 180.The Nifty
PSU Bank - the index of state-run banks on the NSE- tanked 2.65 per cent and was the biggest sectoral loser as all its twelve stocks
