May 28, 2017
The state-owned Bank of Baroda intends to raise around Rs.9,000 crore through dilution of equity by the end of this financial year. This was decided in a meeting of the board of directors of the bank. A statement released by the bank indicates that the plan is to raise an amount of Rs.6,000 crore in equity capital at various stages in the fiscal year and raise another Rs.3,000 crore through tier I capital instruments. The statement also mentioned that the bank will issue bonds both in India and abroad in order to raise the funds.
In the first quarter of 2017, Bank of Baroda (BOB) registered a profit of Rs.154.72 crore as provisioning of bad debts declined by a significant percentage. In 2016, the bank reported a loss of Rs.3,230.14 crore in the first quarter. However, its performance has improved this year making the board of directors of the bank more confident about raising more funds this fiscal year. Also, according to the Economic Times, the total income of BOB rose to Rs 12,852 crore in Q1 this year. It’s operating income in the same quarter last year was Rs 12,789 crore.