Govt's fund infusion decision boosts Bank of Baroda shares by 7 pct

Shares of Bank of Baroda jumped nearly 7 per cent Thursday after the government decided to infuse Rs 5,042 crore into the state-owned lender. The stock climbed 6.62 per cent to close at Rs 129.60 on the BSE. During the day, it gained 7.28 per cent to Rs 130.40.

On the National Stock Exchange (NSE), shares jumped 6.74 per cent to close at Rs 129.75 apiece. On the traded volume front, 23.05 lakh shares were traded on the BSE and over 4 crore shares on the NSE during the day.

The government has decided to infuse Rs 5,042 crore into Bank of Baroda ahead of merger of two other public sector lenders Dena Bank and Vijaya Bank with BoB. The merger of Dena Bank and Vijaya Bank with BoB would be effective from April 1.

The finance ministry through its notification on Wednesday conveyed its decision to infuse a capital of Rs 5,042 crore into BoB, the bank said in a regulatory filing. The government in September last year had announced the merger of Vijaya Bank and Dena Bank with Bank of Baroda, aiming to create the third-largest lender after SBI and ICICI Bank.