Deals
Dena Bank Soars Most Since 2008 as India Moves to Rescue Lender
- Vijaya Bank, Dena Bank, Bank of Baroda poised to be combined
- Analysts say merger to burden Bank of Baroda with bad debts
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Dena Bank surged the most in 10 years after India’s government Monday announced a plan to combine the state-owned lender with two peers including Bank of Baroda to strengthen the debt-laden banking system.
The stock jumped by the 20 percent limit to 19.1 rupees at 10 a.m. in Mumbai, while Bank of Baroda slumped as much as 14 percent amid concern the merger would end up boosting bad loans at the largest of the three banks. The other lender, Vijaya Bank, gained 1.8 percent.