Bank of Baroda gets shareholders' nod to raise Rs 6,000 cr

Public sector Bank of Baroda has received approval from shareholders to raise up to Rs 6,000 crore by issuing equity shares through various modes, including QIP, rights issue or a follow on public offer.

"Bank of Baroda today received approval from shareholders to raise additional up to Rs 6,000 crore through equity capital by way of QIP/ FPO/ preferential issue/ rights issue/ ADR-GDR/ private placement/ compulsorily convertible debentures and any other mode or combination of these at premium/ discount," the bank said in a statement post its annual general meeting held today.

The meeting was chaired by Chairman Ravi Venkatesan in presence of MD & CEO P S Jayakumar and other key officials and board of directors.

"Bank of Baroda, has been able to make significant strides in becoming competitive and improving market share and profitability. The consequence of embarking on a fundamental transformation exercise in 2015 is that the bank has emerged as one of the strongest large banks in India," the chairman said.

Early recognition and cleaning of books has resulted in a provision coverage of 67.21 per cent, which is highest amongst public sector banks, Venkatesan said.

The bank has added more than 24 million customers over a span of 3 years with the customer base now standing at 7.8 crore, he said.

"I am confident that as the economy strengthens, as credit offtake improves, as the NPAs get resolved, Bank of Baroda will be able to grow profits strongly," he added.

Jayakumar deliberated on various aspects regarding qualitative business growth, increase in various portfolios and fees income, digital payment systems & their related cyber securities and action on NPAs.

He also informed the future plans of business growth and profits of the bank, it said in the statement.