The announcement was made after market hours yesterday, 2 January 2019.

Bank of Baroda was up 0.88%. Vijaya Bank was down 6.46%. Dena Bank was down 18.11%

The S&P BSE Sensex was up 61.02 points, or 0.17% at 35,952.54.

The Union Cabinet chaired by Prime Minister Narendra Modi has approved the scheme of amalgamation for amalgamating Bank of Baroda, Vijaya Bank and Dena Bank, with Bank of Baroda as the transferee bank and Vijaya Bank and Dena Bank as transferor banks. The amalgamation will be the first-ever three-way consolidation of banks in India, with the amalgamated bank being India's second largest public sector bank. The scheme shall come into force on 1 April 2019.

For every 1,000 shares of Dena Bank worth Rs 10 each, Bank of Baroda will issue 110 shares of Rs 2 each. Vijaya Bank's shareholders will get Bank of Baroda's 402 shares of Rs 2 each for every 1,000 shares of Rs 10.

The amalgamation will help create a strong globally competitive bank with economies of scale and enable realisation of wide-ranging synergies. Leveraging of networks, low-cost deposits and subsidiaries of the three banks has the potential of yielding significant synergies for positioning the consolidated entity for substantial rise in customer base, market reach, operational efficiency, wider bouquet of products and services, and improved access for customers.