Bank of Baroda plans due diligence exercise

Reported by: |Updated: October 11, 2018

Bank of Baroda is proposing to undertake a financial and tax due diligence exercise on the proposed amalgamation of Bank of Baroda, Dena Bank and Vijaya Bank. The bank has put up a notification for an experienced consultant to conduct a detailed due diligence of the 3 entities for the financial years 2015-16, 2016-17, 2017-18 and April 2018 to Sep 2018 covering financial and tax due diligence. Financial due diligence shall include analysis of financial accounting and tax data to identify major issues and risks, while tax due diligence will cover direct and indirect taxes. The bank is also looking for a consultant to undertake a valuation exercise and determine the swap ratio for the proposed amalgamation. The valuer would value the 3 banks and also work with the independent valuers appointed by Dena Bank and Vijaya Bank to gain comfort on the valuation of each of the two banks prepared by their respective valuers.