Bank of Baroda decides to raise ₹13,500 crore from the market on a day that financial stocks get battered
- The Board of Directors at one of India's top state-owned banks has decided to raise over $1.7 billion from the market.
- The fund raising will include qualified institutional placement to shore up tier-I capital.
- The decision is subject to regulatory approvals.
AdvertisementBank of Baroda's Board of Directors have approved a plan to raise ₹13,500 crore, over $1.7 bilion, from the market to shore up its coffers as the coronavirus pandemic has brought the economy to a standstill.
This will be the breakup of the fund raising:
|Common equity capital including QIP||₹9,000 crore|
|Fund raising with interchangeability option||₹4,500 crore|
This will be subject to applicable statutory 1 regulatory approvals, the company statement added.
The decision has come in on a day that the financial stocks were battered in trade. The Nifty Bank index slumped over 3% on Friday (April 24).
These were the top ten losers among banking stocks in trade today.
|IDFC First Bank||-6.33%|
|Bank of Baroda||-4.23%|
The prospects for India's financial firms is going from bad to worse even as the economy is getting reopened slowly. "Lower credit offtake and significantly higher credit cost for FY21/FY22 have led to FY21E earnings cuts of 9-70% for financials we cover, with diversified financiers impacted the most. Subsequently, we lower our target price (for bank stocks) by 32% on average," BNP Paribas said in a report last week titled 'Down but not out".
ICICI Bank shares fall 3% after its admits to a $100 million exposure to Singapore trading firm
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How to check account balance of bank of baroda
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