Bank of Baroda plans to raise ₹5,000 crore ($690 million) from sales of shares and bonds after posting an unexpected loss in the fourth quarter.
India’s state-run lender’s borrowing plan includes raising as much as ₹2,000 crore through a sale of shares and up to ₹3,000 crore via bonds that qualify as capital, according to an exchange filing Saturday.
The bank posted a net loss of ₹1,050 crore in three months ended March 31 from a profit in the year-earlier period. That compares with an ₹1,100 billion-profit average of analysts’ estimates compiled by Bloomberg.
The bank raised ₹4,500 crore from institutional investors in March to strengthen its capital ratios as the South Asian nation’s financial sector got hit hard by the coronavirus pandemic. Bank of Baroda’s gross bad loan ratio was at 8.87% at the end of March compared with 8.48% at end-December.
