Dena Bank closes 20% up; BoB tumbles 16%, Vijay Bank drops nearly 6% post merger announcement

New Delhi: Shares of Dena Bank surged nearly to 20 percent, while Bank of Baroda tumbled 16 percent and Vijaya Bank dropped nearly 6 percent Tuesday following merger announcement.

The scrip of Dena Bank zoomed 19.75 percent to Rs 19.10 –its highest trading permissible limit for the day -- on BSE.

On the other hand, shares of Bank of Baroda dived 16.03 percent to Rs 113.45 and Vijaya Bank lost 5.69 percent to Rs 56.40.

The government Monday said state-owned Bank of Baroda, Vijaya Bank and Dena Bank will be merged to create the country's third largest lender as part of efforts to revive credit and economic growth. Post this merger, the number of PSU banks will come down to 19.

The move follows top lender State Bank of India last year merging with itself five of its subsidiary banks and taking over Bharatiya Mahila Bank, catapulting it to be among top 50 global lenders.

With PTI Inputs