Corona also had an impact on Bank of Baroda’s March quarter results. The Board of Directors has approved raising additional capital to make up for the loss.
Bank Of Baroda (BoB)
The results of the last quarter of the financial year 2020-21 of Bank of Baroda were very disappointing. The bank has incurred a loss of Rs 1046.5 crore in the March quarter. To compensate for this loss, the bank has made a solid plan. Under this, BoB will try to raise Rs 5,000 crore ($690 million) through the sale of shares and bonds.
The Board of Directors of Bank of Baroda says that the board has approved raising additional capital of Rs 5000 crore. 2,000 crores will be raised as common equity capital through options such as QIP, while the remaining 3,000 crores will be raised through additional Tier 1 capital or Tier 2 capital instruments.
In March, the bank had raised Rs 4,500 crore from institutional investors to strengthen its capital ratio. But the financial sector of the South Asian country was hit by the coronovirus epidemic, which also affected the results of the private bank. The Gross Loan Ratio of Bank of Baroda at the end of March was 8.87%, as against 8.48% at the end of December.
Earlier, Bank of Baroda had a net profit of Rs 1,061 crore in the December quarter. In the Q4 of the financial year 2020 also, the bank had a profit of Rs 506 crore. The net interest income of the bank grew by 4% year-on-year to Rs 7,107 crore as against Rs 6,798.4 crore in the same quarter last year. The bank’s provisions and contingency stood at Rs 3,586 crore in the March quarter as against Rs 3,434.6 crore in the December quarter and Rs 6,645 crore in Q4 of FY20 a year ago.
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