Government to infuse Rs 5,042 Crore into Bank of Baroda
BoB (Bank of Baroda) surged more than 6% after it declared that the government has chosen to impart Rs 5,042 Crore as capital into the PSU bank in front of its merger with two other public sector lenders Dena Bank and Vijaya Bank. BoB said in an administrative filing, the capital implantation will be by the method for particular allocation of equity shares (exceptional securities/bonds) of the bank as the administration investment amid FY19, which is coming at an end this week. The government has so far implanted Rs 1,00,958 Crore into PSBs this monetary year. In the time of February, it had infused Rs 48,239 Crore out of the absolute Rs 1.06 lakh Crore reserved during the current year in 12 state-run banks. While declaring about the capital implantation a month ago, banking Secretary Rajiv Kumar in February had said pending amount of Rs 5,000 Crore might be utilized for any probability or for development capital wherever it is essential, including the amalgamated entity of BoB (Bank of Baroda). With respect to the up and coming PSU bank merger of Bank of Baroda, investors of Vijaya Bank will get 402 equity shares of Bank of Baroda for each 1,000 shares held and Dena Bank's investors will get 110 shares for each 1,000 shares of BoB.