Rs.7000 crore capital infusion positive for Bank of Baroda

The public sector lender, Bank of Baroda has announced capital infusion of Rs. 7000 crore by the Government of India.

In a regulatory filing, the company had stated - Ministry of Finance, Government of India vide its gazette notification dated 27.09.2019 has conveyed its decision to infuse capital of Rs. 7,000 crore in Bank of Baroda. The capital infusion will be by way of preferential allotment of equity shares (Special Securities / Bonds) of the Bank during the FY2019-20 as Government's investment in Bank.

Meanwhile, to complete the process of amalgamation with Dena bank and Vijaya Bank by December 2020, Bank of Baroda has started selling some properties and upgrading systems. There are speculations that through this merger, Bank of Baroda will save Rs. 9,500 crore in the next five years.

At present, the bank is looking for a new MD and CEO as the top positions will retire in mid-October. Bank of Baroda, along with Punjab National Bank, Canara Bank and Bank of India will announce their top levels anytime soon as September 23 was the deadline to apply for the vacant posts.

On Tuesday, the shares of Bank of Baroda opened in BSE at Rs.94.50 as compared to the previous close of Rs. 93.05. The stock hit an intraday high of Rs. 94.70 and intraday low of 92.65. At 10:00 hours, the stock was trading at Rs. 92.80, down by 0.27 per cent.