Bank of Baroda, India’s third-largest PSU bank by assets, lost nearly Rs 6,000 crore in m-cap on stock market closing on Tuesday after the government proposed the merger of Vijaya Bank, Dena Bank and Bank of Baroda. Amid exceptionally higher trading volumes and selling pressure in Bank of Baroda shares, the stock crashed more than 16% to a 2-month low. Bank of Baroda shares also topped the trading volumes and the turnover on National Stock Exchange, at the end of the day, about 14.49 crore equity shares were exchanged on NSE only which led to a turnover of Rs 1,712 crore.
In the intra-day dealings, Bank of Baroda shares nosedived 17.3% to a two-and-half-month low of Rs 111.85 on NSE while the stock tumbled 16.88% to a 2-month low of Rs 112.3 on BSE. Bank of Baroda shares hit a low of Rs 109.5 on 2 July 2018. Recovering marginally in the closing trades, Bank of Baroda share price settled at 113.45, down 16.03% on BSE. Bank of Baroda shares on Tuesday also saw their steepest fall in over 3 years.
Following the sharp dip in the share price, Bank of Baroda lost about Rs 6,032 crore in the market capitalisation to Rs 29,709 crore, at the intraday low, while on the closing basis the market cap loss stood at Rs 5,727 crore. According to the data available with BSE, Bank of Baroda held a market capitalisation of Rs 30,013.38 crore on Tuesday as compared to a market cap of Rs 35,740.92 crore as on Monday.
While, on the other hand, shares of Vijaya Bank ended at Rs 56.4, down 5.69% on BSE after rallying 10.37% to a day’s high of Rs 66. Dena Bank shares skyrocketed 19.75% to a day’s high of Rs 19.1, their highest permissible limit, and remain locked in the upper circuit. The benchmark Nifty PSU Bank shed 5.44% to close at 2,890 following the declines in heavyweight shares of Bank of Baroda (down 16%), SBI (down 4%), PNB (down 4.5%) and Canara Bank (down 7.7%). The headline indices Sensex and Nifty ended at 37,290.67 and 11,278.90, down 0.78% and 0.87%.