Bank of Baroda plans ₹10,675 crore fresh exposure to shadow banks
- Lender seeks to purchase ₹5,600 crore loans from seven NBFCs and extend ₹3,575 crore agri finance
- The bank is in talks with non-banks for asset purchased under the direct assignment route
Mumbai: Public sector lender Bank of Baroda (BoB) plans additional exposure of ₹10,675 crore to non-banking financial companies (NBFCs) in the second quarter of FY20. BoB is looking to purchase NBFC assets worth ₹5,600 crore, co-originate loans of ₹1,000 crore, provide loans of ₹3,575 crore for on-lending to the agri sector and has set aside ₹500 crore for “high-ticket balance sheet takeover", according to a BoB proposal reviewed by Mint.
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