BoB share price closes in negative despite announcing fund raising plans
On Friday, The Vadodara based PSU banking player, Bank of Baroda made an announcement pertaining to raising capital by issuing convertible bonds.
The Bank, in its press release, has said that it has raised Rs 920 crore by issuing 7.44 per cent unsecured, rated, listed, subordinated, non-convertible, fully paid-up, taxable, redeemable, Basel III compliant, tier II bonds on private placement basis.
To comply with Basel-III capital regulations, banks need to improve and strengthen their capital planning processes. These norms are being implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.
Commenting on its capital position, with tier I and overall capital adequacy ratio, under Basel III, at 10.91 per cent and 12.98 per cent, respectively, we can say it is adequately capitalized as of the end of the second quarter of FY20. Its net non-performing assets improved to 3.91 per cent during the same quarter from 4.86 per cent on YoY basis.
On Friday stock closed down by 3.4 per cent at Rs 100.85 on the BSE.