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
Goldman Sachs bought IndusInd shares after the stock price nearly doubled in 13 trading sessions
How to check account balance of bank of baroda
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